Fractional Reserve Scam

[eyedoc]

Hi brother john,

My question concerns banks and the issuing of loans. I was just listening to G. Edward Griffin talk about fractional reserve banking and how banks make loans. I guess, essentially, when you sign on the dotted line for a loan the money is created right then and there and "springs into existence"; and with (for example) a 10% fractional reserve requirement, the banks can loan out 9 dollars for every 1 that they have on deposit, thus creating the loan money "out of thin air". If this is true, for example, on a mortgage, why would they even care if you had the ability or not to pay back the loan. The money they gave you for the house, they created with a checkbook entry, and if you can't pay, you are foreclosed upon and they can sell your house and to them this is all profit. They are still getting your house while investing NOTHING! Yes I understand that they won't get back as much had you paid them for the whole 30 years, but it cost them nothing to create the money. Am I missing something here? Why would they even care if the interest rates were zero on all loans because it was money created from nothing? I don't see how the bank could possibly loose in this scenario. Seems like a great big scam to me.