2 ms·
> Savings in a bank account will be loaned by the bank to another business. This has not been how banks have worked for decades: * https://papers.ssrn.com/sol
by throw0101a 6y ago
> Savings in a bank account will be loaned by the bank to another business.
This has not been how banks have worked for decades:
* https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625
Banks create loans typing something into a computer screen and money shows up in the businesss' account. No savings required.
99% of money created is not by the Fed "printing money", but rather by private bank loans. A twenty minute video summarizing the above paper:
* https://www.youtube.com/watch?v=K3lP3BhvnSo https://www.youtube.com/watch?v=K3lP3BhvnSo
Interview with the paper's author:
* https://www.youtube.com/watch?v=uZi4QE_EfCw https://www.youtube.com/watch?v=uZi4QE_EfCw