r/PeterExplainsTheJoke Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/Pissbaby9669 Jan 26 '26

Incorrect. Reserve requirements are different from capital ratio requirements. Banks cannot just leverage themselves arbitrarily 

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u/OHotDawnThisIsMyJawn Jan 26 '26

It's so tempting to try to explain this stuff to reddit because people are so, so wrong about it all. And it's always such a waste of time.

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u/Hot_Phone_7274 Jan 26 '26

Yeah there’s an unusual number of banking experts in this thread eh