Hi Joe. In response to your very valid question. I think you are operating off the assumption that there are no other deposits being made at that newly created bank. Other deposits are constantly being made which allows the bank to create money out of thin air based off of those deposits. So while someone is being lent $10,000 in newly created money, there are others making deposits that allow the bank to create money from their deposits. Also banks are constantly lending amongst themselves. The fractional reserve banking system does not require that the original $10,000 dollars be in reserves, only as long as others are depositing money and loans are being made. Hope this answers your question.

In the video you give the exaple of a new bank being created, putting $1,111 on reserve at the central bank and lending $10,0000 to its first customer to buy a new car. The seller of the new car deposits the $10,000 to her bank and that bank creates new loans from this deposit.

You do not explain what happens when the car-sellers bank presents the $10,000 check to the newly created bank for payment. Does this not reduce the newly created bank's ability to lend?