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A comment on Starting an Airline . Parent comment

Re:Starting an Airline by sp332 on Tuesday September 24, 2013 @05:18PM (#6440833)
But it could be the same, singular bank that the money gets deposited in and loaned from, repeatedly.
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Re:Starting an Airline by beambot on Tuesday September 24, 2013 @05:22PM (#6440859)
So? If you chain the loans, the bank might have the final balances: ($50M, -$450M) and ($45M, -$405M) and ($405M). The bank's net loan after settling internally is still $500M. Even if spread across banks, the sum of "real" money loaned out is still only $500M. If the loan at the end of the chain defaults, the loss is only $500M net.
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