Old Project Avalon Forum (ARCHIVE) - View Single Post - 14 Page Essay Accurately Depicting and Summarizing Economic Collapse

The One · 10-09-2008, 01:42 AM

Very good article!!

One small typo that might confuse some people:

Let's say that a customer makes a bank deposit of $100. The bank can now loan $900 of the original $1000 to a new customer. That $900 dollar loan will eventually end up in a bank somewhere (it doesn't matter where because its the overall money pool we are concerned with here). Now, if both customers came to get their $1000 and $900 deposits, they would not be able to because only $1000 actually exists.

10-09-2008, 01:42 AM	#4
The One Avalon Senior Member Join Date: Sep 2008 Posts: 2	Re: 14 Page Essay Accurately Depicting and Summarizing Economic Collapse Very good article!! One small typo that might confuse some people: Let's say that a customer makes a bank deposit of $100. The bank can now loan $900 of the original $1000 to a new customer. That $900 dollar loan will eventually end up in a bank somewhere (it doesn't matter where because its the overall money pool we are concerned with here). Now, if both customers came to get their $1000 and $900 deposits, they would not be able to because only $1000 actually exists.