Rhunzzz

Want to Fix the Fed? Get Rid of It

Hmmm. I'm a monetary neophyte here but wouldn't eliminating fractional-reserve lending mean that banks can only lend out money that none of their depositors could call on?? In effect banks would only be able to lend money from fixed/time deposits, not from current or savings accounts, as though the reserve requirement were 100%. That would result not just in a credit crunch, but a credit black hole.