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What he wrote is a popular myth that originated in a misunderstanding how fractional reserve works, it just means they have long term assets to cover short term
by nootropicat 2y ago
What he wrote is a popular myth that originated in a misunderstanding how fractional reserve works, it just means they have long term assets to cover short term liabilities. There's a lot of this stuff on youtube.
If it was true no banks would ever fail, qed.
Ultimately being fundamentally wrong in how the financial system works is extremely unlikely to impact anyone's daily life.
- mlrtime 2y agoThis topic and thread is a great example that HN'rs often have very little understanding of certain subjects that get posted here. If it is VC or SF Tech related, I usually learn something. Anything around Banking, Finance, Trading, Crypto etc... not so much.
- eru 2y agoAnd as usual, 'modern monetary theory' rears its ugly head, too.
- somewhereoutth 2y agohttps://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...