OK I took another look at your posts - the opening of the first one put me off. Banks creating deposits(?) I still need to get across that one.
Do you mean accounting wise? E.g. Joe Public deposits $100k so the bank has 'created' a deposit and it is now a liability because Joe might want it back one day. Is that what you mean?
The ref to pre-GFC US Bank insolvencies is interesting. Equitity investors often lack sufficient knowledge of the debt markets and i certainly did pre-GFC. I knew we had formed a massive debt bubble and the disequilibrium in the system was fatal. Was that a comment from my former Newsletter writer or from me direct?
We are closer than I thought. Good posts just question the above for the sake of discussion. Banks 'create' deposits?
