Quote ="Cookridge_Rhino"I'd appreciate it if you could find an example of me misrepresenting him, because I'm fairly sure I've done no such thing.'"
Seriously, you DON'T develop a Blue Screen Contradiction error writing this:
Quote LG claimed banks create money in a 'money from nothing scam', he thinks when they lend money they create it completely out of nothing, and it is backed by nothing.'"
and then this?
Quote I understand how banks create money via the fractional reserve system. I understand they saw regulation, designed to curb their money creation, as a hindrance which should be avoided in order to maximise profits. I know they underestimated risk, and I suspect some may have pushed it further than they thought was safe, for selfish reasons. I'm not sure why this is relevant though.'"
You admit that banks "create" money out of thin air - but this is ok, provided they follow the rules laid down by the regulatory body which say they must be able to cover the full value of the loan if so required. You then admit they gamed those rules completely (and this is BEFORE we even begin to consider the full ramifications of other scandals such as LIBOR), which ultimately resulted in several major global banks being unable to cover the very same loans you argue are covered.
The reason I say you are misrepresenting at least [ipart[/i of LG's point is that even if banks aren't explicitly set up to purposely function as some kind of backyard counterfeit money press - their EFFECT (and let's be honest - this isn't the first time this has happened throughout history) has amounted to such in all but name.
