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Conditional Falsehood

Summary:
This is false for a fixed regulatory capital and when subjected to time domain analysis: Banks do not lend out reserves and a particular bank’s ability to expand its balance sheet by lending is not constrained by the quantity of reserves it holds or any fractional reserve requirements that might be imposed by the central bank. — Nathan Becker (@netbacker) July 14, 2018 Not taking issue with netbacker but perhaps the one who put this idea in his head...

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This is false for a fixed regulatory capital and when subjected to time domain analysis:

Not taking issue with netbacker but perhaps the one who put this idea in his head...

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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