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There are less than 5000 commercial banks in the united states and it is very rare a new one is approved. They've been consolidating and the total number declin
by superkuh 7y ago
There are less than 5000 commercial banks in the united states and it is very rare a new one is approved. They've been consolidating and the total number declining for decades. Banking isn't a monopoly but it is a very limited, exclusive, club for those with lots of assets.
After all, if you're a bank you can create new money supply out of thin air by lending out money you don't have (fractional reserve). A money printing machine is a very valuable business. Every other service a bank provides is just icing on top of this.
- lonelappde 7y agoFractional reserve is lending out money people give the bank. it's not free money for the bank; the credit is balanced by a debt. You can do the same thing if you convince people to leave stuff at your house and then you rent it out. Heck, every lessee on Airbnb is doing this. As is everyone who has a mortgage and an investment account.