[Toddsterpatriot]

One of us is wrong Todd, and it's not me.

Post proof that banks can lend money for your mortgage out of thin air.

And then explain how any banks that could do that could ever fail.

[Garth Tater]

Todd, you already said that each loan was fully funded, and yet with the slightest bit of research you would find out that the banks operate on fractional reserves. This reserve fraction is set by the Federal Reserve and member banks must keep that fraction of their outstanding loans in reserve. At 10% each bank has 90% of their outstanding loans backed by nothing. If you could be so wrong in such a simple thing in your first post why should I believe anything else you have to say?

We've had this discussion before Todd and you were extremely rude. And now you have shown yourself to be basically ignorant of how our monetary system works. Don't trust me Todd, read what Henry Ford had to say on the matter, or does he have to post proof of what he knew too?

[Garth Tater]

Here Todd, just because it was so easy and you are a Freeper I went out and found your "proof" for you. Mind your manners this time and maybe we can have a conversation as you do seem interested in this subject.

Fed Chairman Ben Bernanke admitted the central bank created $1.3 trillion out of thin air to buy mortgage backed securities. This shocking admission came from the Joint Economic Committee hearing on Capital Hill last week.