Doesn't this make the creation of money, to some extent, a Ponzi scheme - which crashes down when too many bad loans are made (such as for the creation of the dot.coms)?
[EMAIL PROTECTED] wrote:
[EMAIL PROTECTED] wrote:
The concept is meaningful only as a rate--the rate of
flow of loans in the aggregate as compared to the
rate of flow in repayment in the aggregate. If the
rate of loans is exceeding the rate of repayment--
money is being created by banks.
It is not meaningful to say that an individual loan
creates money and the repayment of that individual
loan cancels money.
