I'd say "leverage" is the slightly affirmative, slightly pejorative term for a phenomena that could also be labeled 'fractional reserve banking'.
Read the Federal Reserve's on words on what they 'guide' banks to do with deposited funds:
> The Federal Reserve is carefully monitoring credit markets and is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals
Following the "quacks like a duck" rule, a fractional reserve 'policy' and 'using leverage' look very similar. Both root in criminal misuse of deposited funds.
There is nothing new under the sun:
Leverage, fractional reserve banking, and most of the shenanigans in crypto are all violations of the legal principles governing the monetary irregular-deposit contract.
I _love_ reading anything new by patio11, so absolutely just took a long break from my day to read this and leave the comment. Thanks much! Looking forward to the next BAM!
Read the Federal Reserve's on words on what they 'guide' banks to do with deposited funds:
> The Federal Reserve is carefully monitoring credit markets and is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals
https://www.federalreserve.gov/monetarypolicy/reservereq.htm
Following the "quacks like a duck" rule, a fractional reserve 'policy' and 'using leverage' look very similar. Both root in criminal misuse of deposited funds.
There is nothing new under the sun:
Leverage, fractional reserve banking, and most of the shenanigans in crypto are all violations of the legal principles governing the monetary irregular-deposit contract.
I _love_ reading anything new by patio11, so absolutely just took a long break from my day to read this and leave the comment. Thanks much! Looking forward to the next BAM!