On Sunday, 28 October 2018 at 13:06:53 UTC, Laeeth Isharc wrote:
Banks are special because of the payments system and because of
lending. In October 2008 Gordon Brown was within two hours of
shutting down the banking system and declaring a state of
emergency. If that had happened nobody would have been able to
make payments and new lending would have come to a halt.
In 2038 you won't need banks to make payments because
cryptocurrencies will be a viable alternative. And lending is
already being provided by asset managers. So the justification
for the combination of leverage and the mismatch in liquidity
and risk of banks deposit liabilities and their assets will
disappear.
Only one word: Huerta de Soto.
- Paolo
