Remember the scene from Dumb and Dumber when the bad guy opens the money briefcase to find a bunch of pieces of paper instead of money?

 

Bad Guy: “Where’s all the money?”

 

Lloyd: “That’s as good as money, sir. Those are IOU’s. You can add them up yourself. Every penny’s accounted for.”

 

As ludicrous as the situation is, it isn’t that far from the truth…

 

 

-Content Level: Advanced-

 

In this episode, I talk with Murray about the history of lending and how the current banking system came to be.

 

We get into:

-the history of money lending

-reasons to borrow/lend

-the purpose of collateral behind a loan

-the evolution of modern banking

-fractional reserve banking