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The most basic product offered by banks is also one of the least understood. You’ve depended on its orderly operation your entire life. It runs society at microeconomic and macroeconomic levels. It required hundreds of years of trial and error, plus an edifice some would describe as the world’s largest conspiracy theory that is actually true, to make it safe enough to bet society on.
Deposits are a public/private partnership which create generally usable money out of risky banking activities.
We are not affiliated with Patrick McKenzie. This unofficial audio edition is available to listen to and share for free. Read the original on Bits about Money.
Duration
~12 minutes (11K characters)
Release date
Jul 7, 2022