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Actually it is disputed, even 5th part of the video tries to address that. (Do banks create money or just credit?) Which tries to prove that banks create money
by bluesign 7y ago
Actually it is disputed, even 5th part of the video tries to address that. (Do banks create money or just credit?)
Which tries to prove that banks create money (not credit) cause money you put on bank is guaranteed by government.
But in reality, (even mentioned shortly on video), it is that your deposit is insured by banks via government.
- PeterStuer 7y ago"If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.", whether you call the duck "credit" or "money". And beyond the capped consumer risk the financial crisis was prove that the fragility of the interconnected banking system will be fully underwritten 'above and beyond' by the governments if push comes to shove.