Comments by "k98killer" (@k98killer) on "" video.

  1. From a philosophical and/or analytical perspective, which is the more dangerous practice: fractional reserve lending, or maturity transformation?
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  2. Just a quick clarification: when a bank creates a loan, they issue deposit liabilities against the loan. Those deposit liabilities are the bank credit money that goes into M2. The loan asset just stays on the bank's balance sheet, or in some cases might be sold to another financial institution. The somewhat amusing conclusion is that the bank creates fungible IOUs in exchange for nonfungible IOUs, and it controls the interest rate on both sides of the transaction.
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