Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe Community Center
Current Events
Decline of the Middle Class
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
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>
[QUOTE="floridays, post: 3510536, member: 68849"] 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. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe Community Center
Current Events
Decline of the Middle Class
Top