Short squeeze party thread, page-334

618 I think the answer lies in semantics. From Google

What is fractional reserve banking? Fractional reserve banking is a system in which banks (and credit unions) keep a portion of their customers’ money in bank accounts — called deposits — and can use the rest to make loans, and to a lesser extent, investments. To use a classic example: If you deposit $1,000 into a savings account and the bank keeps 10% in reserves, your bank holds onto $100 and lends out $900 to another customer. That customer spends $900 on a car repair and the auto shop deposits the money. The shop’s bank keeps $90 and lends out $810, and so on. Fractional reserve banking allows banks to essentially create money in the economy. (My bolding)

Also, with a borrower having collatoral rather than having to hand over cash (so the lender will not miss out), I agree that JD's statement was correct)

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