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Isn't this what a bank is? The money sitting in your account is not really there, it's being invested by the bank. Bank accounts exist on the gamble that not ev
by graderjs 4y ago
Isn't this what a bank is? The money sitting in your account is not really there, it's being invested by the bank. Bank accounts exist on the gamble that not everyone wants to withdraw money at once.
- dc-programmer 4y agoI was about to mention the reserve ratio but apparently it’s 0% right now in the US…
- umeshunni 4y agoMatt Levine explains why this is worse: https://www.bloomberg.com/opinion/articles/2022-11-09/bankman-fried-s-ftx-had-a-death-spiral-before-binance-deal#xj4y7vzkg https://www.bloomberg.com/opinion/articles/2022-11-09/bankma... tl;dr - the bank can't invest the money in its own stock.