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'Occupy' must understand there is nothing fundamentally wrong with banking : Comments
By Mikayla Novak, published 27/10/2011Bankers, not banking, have let us down.
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Posted by Pericles, Monday, 7 November 2011 8:10:18 AM
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>>Unfortunately ,putting your money with a credit union will not help much.This will mean our banks will have to borrow more from OS since their leverage from deposits will be reduced.Our overall debt burden will increase.<<
It actually means exactly the opposite: the Banks will be unable to borrow as much, since their lending powers will be restricted by the prudential reserves they are required to maintain. Fewer depositors = lower reserves = restricted lending. Borrowing from overseas does not count towards those reserves, so the end result will not be to increase our debt burden at all.
Unless of course those sneaky Credit Unions decide to lend money as well, using the additional deposits as leverage...
Stick to conspiracy theory, and steer clear of pontificating about banking. All you do is to show everyone how little you understand it.