Well it looks like we are in the middle of no-mans land. I think everyone is waiting on the dollar.
I always thought of fractional banking as you deposit $100 today and each month get a interest payout of let's say 35 cents. Where did the 35 cents come from? It was invented out of thin air. I think what you are talking about is leverage. So for the same $100 you put in the bank, they lend out $900. that means the bank is leveraged 9 to 1. That is what happened during the big lehman debacle. They were leveraged like 40+ to 1. Way over leveraged and then the SHTF.
How do you arrive at that? I know some claim the paper bullion markets will collapse at some point.
Paper markets and Physical markets will have to disconnect at some point. Nothing backing this paper up. Well I take that back maybe tungsten filled gold clad bars or us dollars.
I find it pretty darn amazing that the dollar depreciation, paper metals market depreciation and the physical markets all have been going down this year. Margins are all the physicals can change. At some point I would think the paper metals and physical markets would disconnect, but what do I know.
Actually I was curious as to when there next meet was and found it to be tomorrow. But I believe it is already expected since lackluster jobs report that taper will not happen til 2014.
Think the bankers are bad, wait until Obamacare gets in full swing. The insurance companies will be drowning in money.
They made 20 billion and had to cough up 20 percent. Sounds like they are all in cahoots.