Reply To: Another Bank in Crisis?
ALB said “ To act as a safety deposit box, keeping safe money that people don’t want to use for the time being, and to create new money. Apparently, for him, the two are unconnected.”
That then also begs the question why are the two always related. If I don’t need to “borrow” money through deposits in order to lend, why would I bother with all of the palaver of offering deposit services (which on the face of it doesn’t really make much money. Why not just do lending on its own and if you can just create money by lending it, why doesn’t everyone.