"FYI - I learned about fractional reserve banking in Business School where it was glazed over by teaching us how to calculate reserve requirements vs loans generated. Youtube actually has a cartoon that gives a better explanation and goes more into depth than the formal education that I received. So lets not belittle the progress that informal education has made in the last few years via the internet."

This explains your comments. "In Business School" is all I needed to hear. I'm not discrediting what you're saying but I run into a lot of people with text book experience and to them it's gospel.

Did you guys discuss Loan Loss Reserves? Those are in addition to Capital Reserves and vary depending upon the overall performance of the type of loan funded (paper) and the overall rate of delinquency. This additional reserve requirement can be anywhere from 1-10% on top of any standard capital reserve requirement. Banks are also heavily invested in many institutional and government fixed income products.

Credit Unions are banks just with a different name and a different set of regs. They service merchants and individuals the same way as a bank.

There are plenty of banks with solid balance sheets that are not lending money. They do not look at it as leaving money on the table.

Speaking of "loan loss reserves" - Did you not read this section of my post? It explains loan loss reserves without explicitly naming it.

"A bank's #1 source of income is loans. Banks are not allowed to make a lot of investments that you or I can partake in, and the ones outside of "normal" banking activities are SEVERELY limited by percentage of primary capital. Those activities are used primarily as hedge positions against the default of loans. Don't kid yourself that banks have "assets" and that loans are not a banks PRIMARY source of revenue."

I don't know why you insist on mentioning credit unions. To say your local credit union has the same impact on the economy as a Bank of America would be foolish.

Show me 1 bank that does not lend money. How could you say they aren't leaving money on the table?

Real wealth grows on trees. It's a closely guarded secret passed on to those that are worthy, and I can only disclose this because of my anonymity.

These trees are real, but rare. they are kept on well guarded estates in specific locations which I cannot divulge because it would cause riots.
The "right" people are invited to these estates for a gala dinner and dance, then at the end of the night, always under a full moon, the revelers are allowed a standardized bag and can fill them up with cash.

I'm going to one next weekend to replenish my vault.

__________________
...out
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You haven't countered nothing, because the points you made are not valid, you are basing your counter on information you don't understand, regardless the accuracy of the information, because it does not state what you are saying.. (Brazko)

You're really killing yourself on this. I was simply stating two things. Banks do more with their money than lend it. I've never denied what their primary source of revenue is. I make a living of their loans dude

Personally, I'm used to people saying what they mean without me having to read through the lines. I apologize if I'm not able to read through your lines...honestly. But you did say 10% is the reserve requirement yet you say Loan Loss Reserve is in this figure? Your math is off. Loan loss reserve is in addition to the 10% figure you mention. If you didn't explicitaly say "it"but felt you mentioned "it"...than you would have referenced a number higher than 10%. Really...

I know, you've studied it. I'm guessing if you've practiced it in real life you would have let me know by now. I may not know all the terms, but I know how to navigate within it which is why I mention Credit Unions. No they're not BofA. But take a big guess who's funding the construction of that gas station down the street from your house??? The CU bro. But see, you're not in the business daily. So you just don't know.

It all matters.

The text book won't get you to the promise land. Getting your nose bloody in the streets of life will. My business doesn't stay open because everyone can call BofA...they call me because they've already called BofA.

Silly Rabbit...tricks are for kids.