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A comment on What happens when a culture is driven by the need for money to make more money. Parent comment

Re:What happens when a culture is driven by the need for mon... by SHIT_TALKER on Wednesday November 11, 2015 @06:27PM (#10550156)
The mechanics are incorrect but he has the general idea of the benefit banks accrue from each additional deposited dollar.
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Re:What happens when a culture is driven by the need for mon... by dwd on Thursday November 12, 2015 @12:01AM (#10551392)
Highly recommend reading Steve Keen's "The Roving Cavaliers of Credit" for a dose of reality on the whole process.

tl;dr "banks extend credit, cre­at­ing deposits in the process, and look for reserves later"

http://www.debtdeflation.com/blogs/2009/01/31/therovingcaval...

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Re:What happens when a culture is driven by the need for mon... by SHIT_TALKER on Thursday November 12, 2015 @03:33PM (#10555900)
You will find no dispute from me as to whether banks actually do restrict themselves to limiting their credit creation to a ratio of their deposits. But that is how it is supposed to work.
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