Read more on this subject: Federal Reserve
News Story Source: The Falling Darkness
Holter explains, "The idea behind lowering the reserve requirement is basically making it easier for banks to lend. In the later part of March, they went to 0% to make it easier for banks to lend. . . . With zero reserve requirement, it could create unlimited lending. . . . The Fed will raise the reserve requirement when it wants to tighten credit, and they will lower it when they try to loosen credit. Getting rid of it all together means the reverse of zero is infinity. So, they are trying to reflate again."
What could go wrong? Holter contends, "All sorts of things could go wrong. You could have banks lending to any type of project. What it does is it opens the door to more fraud. It opens the door to fraudulent lending and fraudulent borrowing. The bank could be basically busted, and it still won't matter because they could still lend. If a bank has zero reserve requirement, that does not preclude them to le
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