Deficit Owls | How Banks Can Fail Even Though They Print Money @deficitowls5296 | Uploaded August 2016 | Updated October 2024, 5 hours ago.
Professor L. Randall Wray discusses how banks can become insolvent, even though they only loan out their own IOUs rather than government money that they must obtain from somewhere. The gist of it is that if you've written IOUs totalling in value more than the amount of stuff that you own, then if everybody holding your IOUs demanded payment at once, you would have to sell all your stuff and you still wouldn't be able to meed your obligations.
To get a better handle on this complex topic, learn about what a balance sheet is here: youtube.com/watch?v=ixCPM5HznRU
And read this more detailed article by Positive Money: positivemoney.org/how-money-works/advanced/how-do-banks-become-insolvent
See the whole video here:
youtube.com/watch?v=zdvp5aEW_Z0&index=4&list=PLkKoAQeawlO64sZ7KuRp21luMaUM63guo
And Like Deficit Owls on Facebook:
facebook.com/DeficitOwls
Professor L. Randall Wray discusses how banks can become insolvent, even though they only loan out their own IOUs rather than government money that they must obtain from somewhere. The gist of it is that if you've written IOUs totalling in value more than the amount of stuff that you own, then if everybody holding your IOUs demanded payment at once, you would have to sell all your stuff and you still wouldn't be able to meed your obligations.
To get a better handle on this complex topic, learn about what a balance sheet is here: youtube.com/watch?v=ixCPM5HznRU
And read this more detailed article by Positive Money: positivemoney.org/how-money-works/advanced/how-do-banks-become-insolvent
See the whole video here:
youtube.com/watch?v=zdvp5aEW_Z0&index=4&list=PLkKoAQeawlO64sZ7KuRp21luMaUM63guo
And Like Deficit Owls on Facebook:
facebook.com/DeficitOwls
