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  • Citi's Achilles Heel: Foreign Depositors [View article]
    Leverage is a two edged sword. Adding ignorance and/or arrogance to it as our banking system has done usually doesn't help.

    While it's great to collect high interest on 9 and pay low interest on 1, it really stinks when several depositors decide to remove that 1 and force you to find enough money to maintain even minimal reserves for the remaining 9. Doubly so when 2 of the 9 are losing money.

    Fractional reserve banking is like a daring circus act juggling with lit sticks of dynamite. Even if you collect lots of ticket money for every show, eventually you'll wind up blowing your head off.
    Nov 14 14:39 pm |Rating: +1 -1
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