Banks now have a negative reserve ratio...

[Bindare_Dundat]

Could someone, perhaps Neurotoxin explain this? Im curious to know what it means. It came from another site.:




Check out this information I came across combing through the Federal Reserve reports looking for cues on why the meltdown.



Reserves of depository institutions Vault cash(5)
-------------------------------------- --------------------------------------
Reserve used to Net carryover
Date total(2) nonborrowed required Monetary balances total satisfy surplus(7) of reserve
base(3) with F.R. required balances(
Banks(4) reserves(6)
-------------------------------------------------------------------------------------------------------------------------------------------
July 42731 42469 41067 828452 8420 50206 34311 15896
Aug. 44621 43646 39799 829739 10983 51040 33637 17402
Sep. 42079 40513 40338 826415 8606 49628 33473 16155

Oct. 41476 41222 40026 828353 8264 49747 33212 16535
Nov. 41863 41497 40187 833075 8526 48985 33337 15649
Dec. 42710 27280 40967 836384 8188 52153 34522 17631
2 weeks ending(10)
2007-Nov. 21 40531 40007 39044 833688 7810 49711 32721 16990 74

Dec. 5 44359 44160 42536 835284 9478 48359 34881 13478 38
19 38676 34843 37507 831790 6610 52080 32066 20014 357

2008-Jan. 2 46731 11424 44349 842202 9493 53819 37238 16581 39
16p 39989 -1387 38278 833394 7949 51440 32040 19399 108 

The Bank of International Settlements recommends 8% reserve ratios. The average European bank has 18% reserves.

Borrowed reserves are from the Federal Reserve. Here are the average non-borrowed reserves for US banks by date:

Nov 21 - 4.8%=40007/833688
Dec 5 - 5.3%=44160/835284
Dec 19 - 4.2%=34843/831790
Jan 2 - 1.4%=11424/842202
Jan 16 - (.2%)=(1387)/833394

In addition, the required reserve ratios have been declining.

This is beyond insolvency. This is INSANE.

[youandme]

Gold.

It's simpe CRR (Cash reserve ration), the minimum reserves a bank must have in order to loan out money (work out money). They are giving, interest rates, a cut without the liquidity.

Some beleive that lower interest rates, help give the consumer money to spend. Money to spend equals money made. BUT the money is being made on a weaker non secured dollar.

Bank of International used to recommend 10%. (That was lowballing it)


Alot of people don't know this but US has more gold in the world than any other country. Where is it? In the Rocky Mountains. Sitting under NORAD.

[Cromespyder]

Alot of people don't know this but US has more gold in the world than any other country. Where is it? In the Rocky Mountains. Sitting under NORAD.

do you have a link where i could read about this? i googled it and found nothing.

[youandme]

No I have a family member that helped build NORAD. It's deep within the mountain, everywhere. They used plastic to blow up many parts but would have a excavation team log the gold and track it. Security was around at all times, and the 5 biggest US construction building companies helped build it, but they hand picked the workers for the job, background checks and all. Those with previous military experience were mostly chosen for the job. It was the first time, they were ever to use a certain type of plastic explosive, I'll have to get the name.