I'm not sure if this is a banking, politics, economics, accounting, or just

[John K]

plain conspericie question.? If a bank gets a $1,000 savings deposit on the fractional reserve system do they get to create, lend out $19,000 or $20,000.
From watching this video http://www.youtube.com/watch?v=iYZM58dulPE and reading this seems to be what they are saying. After this is where I have a problem, if they are not paying interest on the $20,000 that they created and it is just a ledger entry as everyone is saying then it sounds like they should be getting a 20 to 1 return on there money minus any expenses or write offs.
Even if there was no spread on the interest rates and they paid 5% and only charged 5% that means after a year they would have a $950 return minus taxes insurance and write-offs.
If you scale that up to the millions and just get 5.5% or 6.5% which was the norm you are talking about doubling you assets every year or year in a half.
It seems like the banks have an unlimited ability to make money if I understand the concept. So either we are working for the banks or I missed something