Melonie
06-20-2014, 02:28 AM
^^^ unfortunately, that South Park piece is not based strictly on a fictional story line. By definition, 'fractional reserve' banking ... and its cousin 'rehypothecation' ... both arguably attempt to create 'something' out of nothing. Thus in a total SHTF scenario, creditors can be left waiting in line for a piece of 'something' that may not actually exist. Similarly, creditors can also be left waiting in line for insurance payouts that don't actually exist either.
This is the basis for my decision to stick with an 'independent' investment house like Vanguard, as opposed to a brokerage backed by a big Wall St. bank which deals in both 'fractional reserve' cash as well as 'rehypothecated' commodities. See
This is the basis for my decision to stick with an 'independent' investment house like Vanguard, as opposed to a brokerage backed by a big Wall St. bank which deals in both 'fractional reserve' cash as well as 'rehypothecated' commodities. See