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Re:The economics of all-you-can-eat buffets by lonelappde on Sunday January 26, 2020 @09:11PM (#22156349)
Fractional reserve is lending out money people give the bank. it's not free money for the bank; the credit is balanced by a debt. You can do the same thing if you convince people to leave stuff at your house and then you rent it out.

Heck, every lessee on Airbnb is doing this.

As is everyone who has a mortgage and an investment account.

Re:The economics of all-you-can-eat buffets by chii on Monday January 27, 2020 @08:03AM (#22158858)
A bank can lend out more than the total deposits they have under fractional reserve banking. This is literally creating new money.
Re:The economics of all-you-can-eat buffets by superkuh on Monday January 27, 2020 @11:09AM (#22160599)
Yep. The majority of the M0 money supply is created through fractional reserve banking as debt.