Quote Originally Posted by Witton Park View Post
Funny, I thought that Oracle and Graham Breeze's savings in the Halifax on which they gain 0.25% interest gross per annum were what the Halifax lent out to me at 3.25% for my mortgage and the Halifax trousered the 3% as their margin.

If they "just print it" what do they do with the deposits of Oracle and Graham?
Any economics text book will tell you that what I have said is true. They have to keep some money back in case there is a run, the rest I assume is invested in stocks/shares. A lot of the money that keeps the economy going is simply printed - it is not backed by gold reserves like it used to be. WRT houses and mortgages they do of course have the "value" of the house to fall back on, assuming it has not been artificially inflated.