Fascinating comment on the fragility of the Banking system. The numbers here are American, but the a similar relativity would apply in Europe, Canada, or Japan.
This is why the relatively small matter of the sub prime credit crisis, has just an enormous ripple impact across the markets.
Meanwhile, the total reserves of the banking system remain about $45 billion, nearly all of which represents temporary repurchase agreements that are continuously rolled over as they become due.
Do investors honestly believe that $45 billion of reserves and $202 million of discount window borrowings control a $6.3 trillion banking system and a $13.8 trillion economy?
Bankwatch 