(October 18, 2013 at 3:38 am)Aractus Wrote: If a bank added a balance to your account without physically holding the money, it'd be the stupidest thing they could possibly do because they'd be putting themselves into debt, and they'd be committing fraud.
That's exactly what they do and it provides a clue as to part of what the GFC was.
Watch this nice little documentary:
http://www.youtube.com/watch?v=jqvKjsIxT_8