
Do We Actually Need Debt?
Economics Explained
00:00
Saving Your Money With Us
In a typical home loan the bank is protected by two layers of assets. This alternative type of banking does not have that first layer level of security. Banks like these will not give loans to businesses but they will instead invest directly into businesses or projects that they think are going to turn a profit. Having equity exposure to an economy rather than debt exposure is in many ways a more responsible way to ensure money gets to where it needs to go. There is no getting around the fact that we are addicted to debt today. We use it for an ever increasing amount of things in our daily lives. To walk back from where we are now would unfortunately be nearly impossible.
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