Fractional Reserve Lending

Many people have asked me about how banks have been failing lately in client interviews, etc.

One of the better articles on the subject can be found on one of my links to my blog, Misch's Global Economic Trend Analysis.

The fraud that Misch suggests is, albeit alarming, closer to the truth than I think the government or the banking industry would care to admit.

At the heart of the issue, as Misch suggests, is whether or not the banks can honor their word.

Misch suggest a link to an article by Murray Rothbard, where he quotes: "By the very nature of fractional Reserve Lending, banks cannot honor all its contracts".

In other news, Retail Same Store Sales numbers came in high for the month of September...

Grace & Peace

PLW