The Bank never "goes broke"
The Bank never "goes broke."
If the Bank runs out of money, it may issue as much more as may be needed by merely writing on any ordinary piece of paper. - Rules from the game of Monopoly.
Had you bought ANY Citibank's Share when it was traded around 1.0x last week?
This question somehow similar to the one asked "How many of you bought Phuket/Pattaya's property after Tsunami hit?"
A Bit of The History
In 2004, the Securities and Exchange Commission allowed the top five banks to print as much money as they needed to by dissolving the reserve limit of 12 to 1 - just to save the economy.
A reserve limit of 12 to 1 means for every dollar in the bank's accounts, the bank can lend out 12 dollars in debt.
By allowing the top five banks to dissolve the 12 to 1 reserve limit, these banks could now effectively print money at will.
Again, as the rules of Monopoly state:
The Bank never "goes broke." If the Bank runs out of money, it may issue as much more as may be needed by merely writing on any ordinary piece of paper.
Unfortunately, allowing the biggest banks to print nearly unlimited amounts of money did not save the economy. It only made the problem worse.
If the Bank runs out of money, it may issue as much more as may be needed by merely writing on any ordinary piece of paper. - Rules from the game of Monopoly.
Had you bought ANY Citibank's Share when it was traded around 1.0x last week?
This question somehow similar to the one asked "How many of you bought Phuket/Pattaya's property after Tsunami hit?"
A Bit of The History
In 2004, the Securities and Exchange Commission allowed the top five banks to print as much money as they needed to by dissolving the reserve limit of 12 to 1 - just to save the economy.
A reserve limit of 12 to 1 means for every dollar in the bank's accounts, the bank can lend out 12 dollars in debt.
By allowing the top five banks to dissolve the 12 to 1 reserve limit, these banks could now effectively print money at will.
Again, as the rules of Monopoly state:
The Bank never "goes broke." If the Bank runs out of money, it may issue as much more as may be needed by merely writing on any ordinary piece of paper.
Unfortunately, allowing the biggest banks to print nearly unlimited amounts of money did not save the economy. It only made the problem worse.
