8Kole8 (November 30, 1999 at 12:00 am)

ur video is rather uninformative and i did not enjoy viewing it

Myrkul1029 (November 30, 1999 at 12:00 am)

it would be very helpful if you could show me mathematically how bank A when it recieves a loan can in the same time improve its reserve ratio and still make a lot more loans with it

Myrkul1029 (November 30, 1999 at 12:00 am)

i suppose you mean that bank A takes some reserves and doesnt make new liabilities out of them in order to get a higher reserve/liability ratio and then supposedly she has some left over with which she can make new liabilities at a reserve ratio of 10% like you said. but since you didn't specify any numbers and then at the end you go on and say bank A will make new liabilities at a rate of 10:1 from the new reserves but we know nothing of its former reserve ratio it made it very confusing to me

Myrkul1029 (November 30, 1999 at 12:00 am)

i'm not sure i understand this last bit,, if bank A has a reserve that is too low, that means its ratio of reserves/liabilities is too small, so when it takes a loan you said it can take those new reserves and immediatly make them checking accounts or whatever.. but if it were to take all the new reserves and make new liabilities in the same ratio it did before it would wind up with the same reserve/liabilities ratio as before, therefore not improving the reserve ratio but keeping it the same

justpem (November 30, 1999 at 12:00 am)

Sal but does all this printing money to buy treasury bonds generate any inflation problems?

JanamDJ (November 30, 1999 at 12:00 am)

maximumfunFX, I believe Sal just uses Paint in his videos. Guess you don't always need the fanciest tools to be effective.

jackuy12345 (November 30, 1999 at 12:00 am)

keep them up plz

maximumfunFX (November 30, 1999 at 12:00 am)

What tool have you used to create this series? Great series, BTW.

mborsuk (November 30, 1999 at 12:00 am)

Why does uncles deposit go to na asset site? Hhoudn't it go to liabilities site?

HumanistDad (November 30, 1999 at 12:00 am)

To increase the Fed Funds rate, the Fed issues Treasury bills and takes bank notes (cash, money, etc) in exchange. Where does the money go? Is it essentially 'out' of the economy?