The fractional reserve banking system creates inherent instability because banks create money when times are good and expand leverage, but when confidence erodes people withdraw deposits and deleveraging becomes a painful process, creating cycles of instability.
causalpending
Speaker
William BernsteinEvidence Quote
“you have a system where Banks make literally make money they create money and when times are good uh and people are feeling good they create a lot of money and then when people uh start to worry...deleveraging...is a very painful process”
Created: 8/10/2026, 11:00:47 PM
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