what i cant understand is where all this money went? if i gamble and lose the bookie gets it, so who got all the cash the banks lost? And dont say millions of people who couldnt pay the banks back, because the banks loan out only against your assets! my aunt borrowed £60,000 from northern rock against her property, she died a two years later and before i could benefit from her estate I had to pay northern rock £94,000 back before i got 1 penny. and further more if half the banks lost cash by speculating with other banks then surly the money is still in the banking system. the whole system is one giant con and we the little people are complete mugs to go along with it!

No, it's because they have to front up the money 'cos they can't create it. Banks create liquidity not money. Part of the problems at the moment steam not from a lack of money in the economy (there's actually more money as governments, who can create money, have created it) but a lack of liquidity from banks not lending.

Quote: handrags "if that where true wouldnt house prices be at rock bottom ? and if you do default on your morgage the bank would own your house [ still a valuble asset], Yet the yanks owe trillions, and yanks rent property as do most europeans so thats not the simple answer.'" Look at property prices in Detroit if you don't think they are rock bottom. In this country all BoE and government policy is aimed at keeping property prices artificially high. Eg www.homes.com/Real_Estate/MI/City/DETROIT/

Quote: handrags "if that where true wouldnt house prices be at rock bottom ? and if you do default on your morgage the bank would own your house [ still a valuble asset], Yet the yanks owe trillions, and yanks rent property as do most europeans so thats not the simple answer.'" Look at property prices in Detroit if you don't think they are rock bottom. In this country all BoE and government policy is aimed at keeping property prices artificially high. Eg www.homes.com/Real_Estate/MI/City/DETROIT/

Nice pick.

Have you ever been to Detroit?

Quote: SBR " Quote: SBR "Two reasons - 1) Reserve requirement - there is supposedly a ceiling on how much money they can create depending upon the amount of deposit money they have. 2) They need a borrower's signature to create the money.'" No, it's because they have to front up the money 'cos they can't create it. Banks create liquidity not money. Part of the problems at the moment steam not from a lack of money in the economy (there's actually more money as governments, who can create money, have created it) but a lack of liquidity from banks not lending.'" I've shown you many examples of people stating that banks do indeed create money yet you still refuse to accept it as fact, why is that? What makes you dismiss official bank literature and economists comments that explain that banks can and do inflate the money supply? Here's another one, Detlev Schlichter an 'Economist who has worked in finance for 20 years including stints at Meryll Lynch and J.P Morgan', talking on The Kaiser Report 13.25 minutes in - www.youtube.com/watch?v=C8FIXhDJ8o0

Quote: SBR " Quote: SBR "Two reasons - 1) Reserve requirement - there is supposedly a ceiling on how much money they can create depending upon the amount of deposit money they have. 2) They need a borrower's signature to create the money.'" No, it's because they have to front up the money 'cos they can't create it. Banks create liquidity not money. Part of the problems at the moment steam not from a lack of money in the economy (there's actually more money as governments, who can create money, have created it) but a lack of liquidity from banks not lending.'" I've shown you many examples of people stating that banks do indeed create money yet you still refuse to accept it as fact, why is that? What makes you dismiss official bank literature and economists comments that explain that banks can and do inflate the money supply? Here's another one, Detlev Schlichter an 'Economist who has worked in finance for 20 years including stints at Meryll Lynch and J.P Morgan', talking on The Kaiser Report 13.25 minutes in - www.youtube.com/watch?v=C8FIXhDJ8o0

The debt based money system is the prime reason that the gap between the rich and poor consistantly grows wider and wider as explained in this video - www.youtube.com/watch?v=hx16a72j__8

The debt based money system is the prime reason that the gap between the rich and poor consistantly grows wider and wider as explained in this video - www.youtube.com/watch?v=hx16a72j__8