[colinmhayes]

The bank only has 100k though. They can’t loan out 1m because they don’t have 1m to give out.

[drexlspivey]

That's the whole point, they just create $1m and give it out

[colinmhayes]

What happens when the person withdraws the million dollars? The bank only has 100k.

[drexlspivey]

Are you talking about physical paper currency? That’s totally a different issue. What happens if the original depositor deposited via a bank wire and you want to loan out $100 dollars in paper money? You just get some paper money from the FED. Same thing here.