... the $25K you have sitting in a bank (unless it is cash in a lockbox) is used by the bank to make loans to others ... car loans to buy a new car ... which stimulates the economy and creates jobs.

Member banks of the Federal Reserve System can collectively leverage their loans to the point they could have maybe 5 or 6 times in loans compared to original deposits using the FRS regulated reserve ratio. Member banks may also borrow from the Federal Reserve Bank up to a loan-to-equity ratio set by the FRS.

The major problem in our economy is outsourcing which has taken jobs away from our nation ... and Obama is doing nothing about it. It is also draining money out of our nation.

And the Gateways of the world think they have all the answers ... tax the rich!


*LOL while shaking head*