Where soes buck stop for banks losses?

[zxcvbnm]

Presumably the banks borrowed the money from someplace else to give to the man on the street yes?
Was it the ECB? WHo was it?

Anyway - whoever it was then presumably of joe bloggs can't pay back the irish bank then presumably this other place where the banks got their money from originally is also in trouble?

Or do i have this wrong?
Can someone explain please.

 

[lemur]

Fractional reverse banking - look it up. Its how banks work.

 

[extopia]

We could act like some third world country and not pay back the originator. That's probably not our best option in the long term.