Reply to thread

Message: <blockquote data-quote="floridays" data-source="post: 3510536" data-attributes="member: 68849"><p>Gumby, you're one of the last people I'd want to be mean to, but bank reserves have nothing to do with the mortgage division. We have a fractional system on deposits, meaning a financial institution must have the reserve amount on account at the end of a days business. That is when banks sell money each night to keep their books within the amount required by the Fed. That is where the fed funds rate comes from, there is a cost for moving these funds even if overnight. It is the Feds way of staving off a collapse of individual institutions if a run of withdrawls happens. Bank reserves and mortgage loans are different items. Again, I stand to be corrected by an accountant. Finance wasn't my major but between looking up skirts I tried to pay attention.</p></blockquote><p></p>