I can imagine an economy in which there were no "banks" and businesses simply bought and sold shares in each other, or made loans to each other. That could work.
I cannot imagine an economy in which there were no underlying businesses, only banks lending (or not lending) money to each other.
The failure to realize which one is real and which one is an illusion will lead to ineffective strategies for national prosperity.
- rws
2 comments:
Maybe, then, "banks" are as unnecessary as "store fronts" in an era where ordering merchandise from Amazon is faster than driving around to find it at a "store".
Maybe they have outlived their usefulness, and we can eliminate them entirely.
Of course, that would argue that the best use for $700 billion would not be to prop up banks that are "clogged up", but to bypass the clogged ones and find new pathways for money to flow that don't require "banks" and a cut for the "middleman".
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