What exactly is fractional reserve banking?

The bank is allowed to lend out a proportion of the money that savers have just loaned it. Usually the reserve part that is not loaned out is small and about 10% of the first deposit from the saver. Since the money will circulate in the economy and come back to the bank several times, this arrangement means that the total amount loaned out by a bank can exceed the original savings investment by up to 9 times (if the reserve is only 10%).

Gee, I wish I could be a bank.

it is the greatest scam ever invented. the bank loans you money that it doesn't have and collects interest payments from you. no wonder banks are usually the largest buildings in any town. but try going to your bank and asking to open a fractional reserve checking account!