(And if starting a bank was a magic money-printing machine, no bank could ever need bailing out! They could bail themselves out! By definition!)
And can you go into more of why you don't think that applies to fractional or no-reserve banking? If I'm required to hold all my deposits in cash, I'd have to fund my loans through a different mechanism. Isn't lower reserve requirements precisely the means through which "money someone doesn't need right now" can be "temporarily used, and returned eventually, by someone else"?
(And if starting a bank was a magic money-printing machine, no bank could ever need bailing out! They could bail themselves out! By definition!)
And can you go into more of why you don't think that applies to fractional or no-reserve banking? If I'm required to hold all my deposits in cash, I'd have to fund my loans through a different mechanism. Isn't lower reserve requirements precisely the means through which "money someone doesn't need right now" can be "temporarily used, and returned eventually, by someone else"?