There's a big, fundamental flaw with any banking system that allows banks to take money from savers then loan it out to borrowers.  It isn't that savers can't always get to their money when they need it.  It isn't that borrowers don't always pay it back.  It is, however, that banks loan out more money than they have been given by savers to look after and investors to gamble. Were it as simple as banks loaning out more money than they have in knowledge that they need only keep so much in reserve for the fraction of their savers and investors whom withdraw their money on any given day then … [Read more...]