The Last Time Banks Did This, They Caused A Financial Crash

Prof. Wolff joins The Thom Hartmann Program to illuminate how banks are supposed to hold a percentage of every dollar in reserves, which means they have a large pile of money. What happens if the government wants to stimulate the economy, by telling the banks they can lend out part of their held deposits or all of it? The last time the banks were able to lend out their reserves, we found ourselves in a global financial crash.

 

Be the first to comment

Please check your e-mail for a link to activate your account.

connect