Matthew Yglesias

@mattyglesias ↗

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Last Checked March 17, 2023

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Tue Mar 14 01:54:33 +0000 2023

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Matthew Yglesias @mattyglesias

Suppose all your savings was in the form of gold bars. You’d want to store those bars someplace safe and you’d have to pay for the privilege. The more bars you had, the more you’d need to pay. Alternatively, you could let the gold-storer borrow your gold and lend it out. — PolitiTweet.org

Posted March 14, 2023

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Matthew Yglesias @mattyglesias

Isn’t borrowing short to lend long like all of banking? I agree that on some level the role banking plays in our society is an error, but that’s a story for another day. — PolitiTweet.org

SVB committed one of the most elementary errors in banking: borrowing money in the short term and investing in the… https://t.co/G7nYtt1X8q

Posted March 14, 2023

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Matthew Yglesias @mattyglesias

In that system, the bank pays *you* for the right to store your gold because it would then earn a profit by loaning it to other people. Of course legally they wouldn’t be storing your gold bars at all, they’d be borrowing them. But with a promise to give them back on demand. — PolitiTweet.org

Posted March 14, 2023