Don’t they lend out 90% of our deposits to safe (risky) mortgages?
Fortunately widespread financial illiteracy & blissful ignorance helps prevent bank runs.
As long as people see $$ going up on screen after they deposit money in bank, they trust that they can withdraw it any time.
They don’t know 90% of their deposits gets loaned out to safe recession proof borrowers but it doesn’t reflect in their bank account.
Most are unaware that most major banks will have to stop withdrawals if many people try to withdraw at same time and Fed will have to print trillions to save their Fractional Reserve Banking financial system.
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