People know exactly what fractional reserve banking is, and understand that it is ignorant at best to assert that banks creating credit and informed parties accepting that credit at parity with Fed-issued reserve notes because both parties understand how the system works and can access those reserve notes on demand where required and a criminal enterprise selling a claim on a nonexistent asset to people that believe their fraudulent representations are the same thing.

Banks profit from the repayment of loans, not directly from the issue of money, and banks' willingness to accept each others' credit at parity to m0 reflects their knowledge of the facts about other banks' expected future income streams and guaranteed access to an m0 lending facility, not ignorance of their counterparty not having what they claim to have. If everyone wants to withdraw their USD from a bank as cash, the reserve lending system is designed to actually allow this to happen. Banks fail, infrequently, because the number of people who fail to meet repayment obligations to the bank exceeds expectations, not simply and inevitably because not enough Peters are willing to be robbed to repay Paul.

The two are similar only in the same sense that a futures contract and a shyster selling you the Brooklyn Bridge both involve the other party selling something they might not be able to deliver.