Why is it legal for banks to accept people's deposits and

What do you mean illegal?

>>1790293
>but it is illegal if you try to do it?
Plent of people take out loans from friends and family (aka accept their deposits in return for a promise of interest payments) and do whatever they want with the money. And it's perfectly legal.

On a more general note your argument is like saying, "Why is it legal for doctors to administer heroin whenever they see fit, but it's illegal if I try to do it?"

>>1790337
I think OP is being deliberately vague. He is either being political and wanting to talk about the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or the Securities Act of 1933. I haven't looked at this stuff in a while, so it is not fresh in my mind.

>>1790293
That money multiplier bs is not how it really works, check out this website for info about how banks really create money

http://positivemoney.org/how-money-works/how-banks-create-money/

>>1791950
The article you linked is also talking about the money multiplier, albeit in much less detail and plus some tinfoil haberdashery in the last paragraph.
The relevant point is that the required reserve ratio is the only variable that limits money creation.

>>1791989
>The relevant point is that the required reserve ratio is the only variable that limits money creation.
no it's one coefficient in fact the other is velocity of money.