Banks currently are allowed to loan money based on "assets" which are generally "promises to pay" back other loans. The more outstanding the loans; considered "assets", the more loans the banks are able to process, and one of the reasons they keep sending people blank checks; a way to increase their "assets", thus loans, thus income for the bank...not the investors or the depositors whose earnings are held to a miniscule amount.
Recent regulations updates required banks to have more cash reserves, but it is still miniscule compared to their 'assets' of debt; thus easily allowing again, bank melt downs, i.e., creating what looks like money when it is just more debt piled on more dept. Eventually the system will collapse. See video on YouTube "Money as Debt".
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