IPFS News Link • Economic Theory

The entire western financial system has a fatal flaw that will spell its undoing

• arclein

The entire western financial system is based on "fractional reserve" banking, which is all based on the assumption that people don't move very quickly -- nor simultaneously -- to withdraw their money from financial institutions. But in the age of rapid information transmission and accelerated awareness of bank insolvency, large groups of people can pull their money out of institutions in mere hours (instead of the many days it used to take).


JonesPlantation