"This means that for every $100 of legal tender that is deposited with the bank, the bank is allowed to loan out $90. Should this $90 be spent in such a way that it is eventually re-deposited with a bank, that bank is able to issue a new loan of $81 based on their fractional reserve requirements. If this process continues uninterrupted, the bank can issue up to $1,000 in newly created fiat money from that original $100 deposit. Because bank credit has been legally decreed by the government to be a medium of exchange, the banks just created $900." Devin explains why the credit crunch is crippling the economy. Of course, Bob Reich is right that there's not much push to grow right now, either.

Dear Change.gov: Let's title these better, eh?