• Simba@lemmy.world
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      1 year ago

      They can’t.

      Unless they’re referring to scummy mega-banks that exist by fucking over the little guy with random fees, hard to close accounts, and other scummy practices like Wells Fargo, BofA, etc.

      But banks as an institution? No.

    • ElHexo [comrade/them]@hexbear.net
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      1 year ago

      You’re a central bank, you manage the economy giving out dollars.

      Do you lend to people directly or do you think, “no, we should guarantee private individuals tremendous power and profit so that the financial system can collapse due to their mismanagement every couple decades”

    • rothaine@beehaw.org
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      1 year ago

      Through the magic of fractional reserve lending, banks are able to loan you money that doesn’t exist.