So you are serious? This is not a word play like the meaning of "is?"
Yes, I'm serious.
Please explain ole wise one.
Have you ever had a mortgage or car loan?
Years and years ago. I'll try to guess where you are going.
A percentage became an assest for the bank. A percentage went into the banks reserve. With that assest the bank could use it to produce another loan and so on. Though not actually, but somewhat similar to a ponzi scheme.
But now, what we see today are banks sitting on bad loans. Their assests diminished losing their borrowing power. So now comes the fed and the treasury to the rescue. The fed convinces the govt something must be done to thwart a disaster. The govt agrees. So the fed and the treasury scheme to create money to pimp into the system.
How am I doing so far?