Fed Policy: It's Not Fractional Reserve Banking, It's ZERO Reserve Banking


  By Mish

The above image from Fed Policy Tools

"This action eliminated reserve requirements for all depository institutions."

The Fed openly encouraged and sought both inflation and speculation. It got what it wanted and then some. 

Now the Fed has no idea how to fix the mess it created.

Fictional Reserve Banking

The number of people defending fictional reserve banking caught me by surprise. Here is a Tweet chain worth exploring.

Schools Need Fractional Reserve banking?!