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Ep23 “When Banking Fails” with Amit Seru

All Else Equal: Making Better Decisions

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The Archaic Way of Finding Investments

There are two ways to match the risklessness of deposits with equally riskless investments. The bank should invest in short-term trisuries, rather than risky shares or mutual funds. If you want to withdraw your money from a mutual fund, you're only able to withdraw it at its current value. This archaic way of finding a banking is somewhat puzzling. I mean, why do we still have banks?

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