well, what fractional reserve

well, what fractional reserve banking does is create more risk in the economy. A miscalculation of the risk factor of a large enough portion of credit could end up in bankruptcy and run to the bank. Another big problem is these financial products which make it possible for banks to throw risk management out of the window and lend out as much as they can while letting other people take the risk, which further increases the chance of a bubble forming. Other than that the real issue is the interest asked on these loans because they add up and create an enormous demand for exponential growth in the economy which is obviously gonna end up in the “weaker” players (including governments) going bankrupt leading to mass unemployment, austerity measures and a continuing vicious cycle which can only be delayed by lending out more.But these problems are minor in comparison to what the inherent motive for profit does every day.