4min chapter

2.5 Admins cover image

2.5 Admins 134: 2guys1tesla

2.5 Admins

CHAPTER

Banks Are Just in Time Solutions

A bank is never actually financially capable of giving all of its customers their money back without collapsing. Even the biggest banks generally only have about 10% of their assets in anything remotely liquid because that's how they make their money. So when you tell a bank's entire set of depositors, oh, I think that bank is going to collapse, you've just created a prisoner's dilemma.

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