14 Comments
Mar 23, 2023Liked by kyla scanlon

congrats on the book deal :) I'll be in line for it! :)

Expand full comment
Mar 23, 2023Liked by kyla scanlon

The franchise arrangement is a great analogy. Ultimately, yes, it is public money, partly cuz the government is willing to be the back stop, as they prove each time these banks get into trouble.

Also, yes, most money is created by bank lending and is a liability of the bank. But the govt provides the reserves behind the scenes to make the payment system work, which "effectively" monetizes that credit into government money. (not so sure about that fractional reserve thing / that's kind of a myth)

So, yes, I'm on board with your comment about all money is government money, and is a monopoly of the state. Sorry, Thatcher.

I like your writing style!

Expand full comment
founding

very happy to hear you are writing a book! I'll pre-order.

Expand full comment
author

appreciate that so much <3

Expand full comment

i read these for the quotes. kyla is a good quote selector

Expand full comment
Mar 23, 2023Liked by kyla scanlon

*Deep sigh*

Expand full comment

They don't earn big bucks! ... People always say that but banks aren't that profitable compared with other industries. (Which might be to be expected given that there are over 4,500 of them competing for business.)

Expand full comment
author

Thanks Marc!

Expand full comment

It’s interesting to watch the erosion of trust in banking happen only recently, because it follows the erosion in trust in other institutions and cultural practices. I don’t think we are out of the woods yet.

Expand full comment

Congrats and good luck on the book!

Expand full comment

Where did the cash run out of 3S banks?

Expand full comment

Love your finance slang. The article is a total slay. 😎

Expand full comment

Confidence is what prevents bank run 😉

Expand full comment

The US Government is like "we are very confident in banks. Bank confidence is high."👍

It reminds me of Tyler Durden's #1, and #2 rule about Fight Club..

"The first rule of Fight Club is: you do not talk about Fight Club.

The second rule of Fight Club is: you DO NOT talk about Fight Club!"✊👊

Expand full comment