Imagine a world without lending against liabilities: yes, some people will be able to buy a home, pay for college, buy a car without a loan, but the financial friction will keep a vast majority of people in poverty.
And then it's going to be someone's full-time job to manage those liabilities. Should they do it for free?
> Imagine a world without lending against liabilities
FRB isn’t creation of wealth, it’s plain old redistribution. In other words—welfare for those who can haul in the biggest loans, at the expense of those who earn, work and save up. What would those people do, if they got a chance? What are the compound effects of that over time?
Imagine a world without lending against liabilities: yes, some people will be able to buy a home, pay for college, buy a car without a loan, but the financial friction will keep a vast majority of people in poverty.
And then it's going to be someone's full-time job to manage those liabilities. Should they do it for free?