2019-09-16 11:41:59

The Last Time Banks Did This, The Market Crashed

Banks make their money from depositors by lending to others.

Banks lend out almost all the money they have on deposit and this means that there could be a bank panic if a lender can’t retrieve their deposits.

The banks are supposed to hold a percentage of every dollar in reserves, which means they have a large pile of money.

What happens if the government wants to stimulate the economy, by telling the banks they can lend out part of their held deposits or all of it?

The last time the banks were able to lend out their reserves... we found ourselves in a global financial crash!

Dr. Richard Wolff explains to Thom how all this works.

Bank Lending Banks Depression Dr. Richard Wolff Economy Financial Crisis Lending Market Market Crash Recession The Thom Hartmann Program Thom Hartmann United States

Economy

The David Pakman Show

There Are Food Lines in America in 2020

There Are Food Lines in America in 2020

The Thom Hartmann Program

These Companies Put Millions In Poverty From Low Wages

These Companies Put Millions In Poverty From Low Wages

The Thom Hartmann Program

Uber and Lyft Exploitation Of Gig Workers

Uber and Lyft Exploitation Of Gig Workers

The Thom Hartmann Program

Trump's Fake Economic Recovery

Trump's Fake Economic Recovery

Related

Democracy Now!

Indigenous Groups Vow to Keep Resisting as Construction Is Approved for Enbridge Tar Sands Pipeline

Indigenous Groups Vow to Keep Resisting as Construction Is Approved for Enbridge Tar Sands Pipeline

The Thom Hartmann Program

Trump Was Defeated, What's Next?

Trump Was Defeated, What's Next?

Democracy Now!

Medea Benjamin on the Movement to Oppose Michèle Flournoy as Pentagon Chief

Medea Benjamin on the Movement to Oppose Michèle Flournoy as Pentagon Chief

The Thom Hartmann Program

QANON: Everything You Need to Know

QANON: Everything You Need to Know