Fractional-Reserve Banking - I’ve never heard it more eloquently put than in the Bedford Falls Bank Run scene from “It’s a Wonderful Life” (1946). George Bailey, played by James Stewart, reasons with a mob of people who all want their money at once. Oh, it’s a waxing poetic. If you haven’t watched the scene, I suggest you do.
Stewart says, "The money's not here. Your money's in Joe's house. That's right next to yours and then the Kennedy house and a hundred others. You're lending them the money to build and then they're going to pay you back as best they can. What are you going to do, foreclose on them?"
I had never really tried to understand previously, just kind of accepted things the way they were. I also never really got anywhere asking people for help in understanding the financial system. After watching that scene, I was almost convinced the system could work.
Stewart had a way with words. I like Satoshi's words better.
#fiat #selfcustody
