Covid killed the fractional reserve requirement

[Intrepid]

On March 15 2020, the Covid lockdown began in the US with the shutting down of the New York City school system (the largest in the country).

Google bomb: When did the covid lockdown begin?

11 days later, the Fed reduced the banking reserve requirement from 10% to zero. It is still at zero.

Google bomb: What is the current reserve requirement for banks?

Just thought that was interesting.

 

[unknown]

I actually remember that at the time.

Just a little something to help nudge the collapse.

 

[Intrepid]

I actually remember that at the time.

Just a little something to help nudge the collapse.

.
yeah, craziness. I've been thinking a lot lately about retirement, liquidating assets, get it all out of the banks and into a safe, etc. And I came across that last night and thought to myself, "if I went to the bank and tried to withdraw all my pesos, he could just smile and say 'I've very sorry.'"

 

[TheTexan]

The fractional reserve requirement was mostly just an obsolete vestige, retained purely for the purpose of maintaining the illusion that reserves actually still matter.

But I guess they have given up that pretense.

I wonder if they still teach the fractional reserve lies in school, I bet they do.