Image Source: Pexels

So one thing that has been a Big Question for a lot of people lately is the question of deposit insurance and the concept of money.

What does it mean that SVB got technically bailed out? Are all the banks going to be implicitly bailed out now? Whose deposits are okay? What is the point of the banking system if everything is insulated? Is money… safe?

And this gets into this really funky space of “What is Money” because turns out, there are a lot of views on how money circulates, whether or not bank deposits are government money, and why there are these behemoths that can take a public good (money) and go and be mad silly with private risk-taking for private profit?

And of course, people start yelling at this point.

“The entire economy is built on fractional reserve banking! Money is created through lending! Your checking account is a liability of the bank!”

All of which is true! Doesn’t make it any less weird!

Video Length: 00:09:28

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