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A comment on “I'd put ~20% chance that we are in the beginning stages of a banking crisis.”. Parent comment

Re:“I'd put ~20% chance that we are in the beginning stages ... by jedberg on Monday March 13, 2023 @08:51PM (#35145703)
Fractional reserve banking is basically giving banks the authority to create money on behalf of the government. They didn't create any extra money to cover this.
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Re:“I'd put ~20% chance that we are in the beginning stages ... by senectus1 on Monday March 13, 2023 @10:23PM (#35146535)
this is also a good point.

Fractional should only be allowed if fully insured. which would make it cost inefficient, so they wouldn't do it.

and that should tell you something about fractional reserves...

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