Saturday, July 7, 2012

Steve Randy Waldman — What is a bank loan?

When a bank makes a loan, does it create money “from thin air“? Are banks merely intermediaries, where “if people are borrowing, other people must be lending“? I consider these sorts of questions less and less helpful. Let’s just understand what a bank loan is, in terms of real resources and risk.
Read it at Interfluidity
What is a bank loan?
by Steve Randy Waldman

1 comment:

Anonymous said...

Commented there.