Indeed banks don't loan/invest deposits. Banks conjure money out of thin air when a loan is made. Some amount of deposits (a small fraction of the loans) is som

Indeed banks don't loan/invest deposits. Banks conjure money out of thin air when a loan is made. Some amount of deposits (a small fraction of the loans) is sometimes needed, although e.g. USA has scrapped fractional reserve demands. I guess people have hard time accepting this because it seems too absurd to be true. Also it's common to confuse money to be a scarce resource/commodity because that's how it looks like for most individuals (and that's the story usually pushed for us plebs).