Honest question: What would be wrong with forcing banks to eliminate reserve ratios... forcing them to loan out only what they have? By real money, yes I mean hard valued instruments instead of paper phoney money based upon leverage and debt, but that is not the heart of this question, unless the thread is driven that way. Yes, I know that credit would be limited to those who don't really need it. Same question, what would be wrong with that? Yes, I know the economy would be cut while we got back to fiscal reality instead of fiscal idealism. Same question... Is the answer so simple as 'the American people would never accept such a reduction in lifestyle to gain economic balance'? Do you actually believe the Fed and the Treasury give a rip about what the people want?