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Re:The crash of 2016? by neffy on Saturday February 13, 2016 @02:17PM (#11095271)
The problem with these kinds of analysis is that they forget one key element in the entire deposit creation mechanism - loans are also repaid. (The economists just leave that part out). In fact a bank lives in the middle of continuous streams of loan repayments coming back on its loan book.

Banks default when their annual losses are more than ~1% of their loan book. Anything else is illiquidity, and that is solvable.

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