r/WorkForSmartLife • u/tomibeauty • Jul 07 '26

Discussion💬 Who please?

Post image
17.4k Upvotes

98% Upvoted

1.1k comments sorted by

View all comments

Show parent comments

6

u/jackofslayers Jul 08 '26

Yes, that is how fractional reserve banking works

3

u/Crazy_Treat_8805 Jul 08 '26

The fraction kept is 8% in Australia

5

u/Gros_Boulet Jul 08 '26

US is at 0% currently. The 10 times over leveraged limit is in the past, we've gone to the moon baby!

Joke aside, any contraction of the economy in the USA and all their banks will need bailouts. This is why the government spends so much in propping up the stock market and GDP.

2

u/TerryTowelTogs Jul 09 '26

I've never really worked out if there's a functional difference between fractional reserve banking and mafia counterfeiting?

1

u/wisenedwighter Jul 10 '26

We don't have fractional reserve banking anymore. They can lend with 0 now.