Zywicki starts off by simply explaining what a bank is and what it does. It is surprising how many people don’t actually know what their bank does for them. Early in life you are a borrower in order to buy a house or a car, later in life you become a lender to that same bank. Unfortunately, there has been so much regulation in the American banking system that there is no room for innovation which caused the phase out of mom & pop neighborhood banks.

What is a bank? What is Glass-Steagall? How much risk should banks take? How should a regulator address our bank system? What is a money-market fund? What is Dodd-Frank and did it get rid of bail outs?

Related Content:

Public Choice Concepts and Applications in Law (American Casebook Series), written by Maxwell Stearns and Todd Zywicki

The Law and Economics of Consumer Debt Collection and Its Regulation, written by Todd Zywicki

The Big, Fat Fed Has Diet Problems, written by George Selgin

“The Newsroom”: Season 1, Episode 6: Bullies, HBO Series

Further Reading:

The Specter of Wall Street, Free Thoughts Podcast

Going for Broke: Deficits, Debt, and the Entitlement Crisis, Free Thoughts Podcast

Is Bankruptcy Law Bankrupt?, written by William H. Meckling

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