“From a depositor perspective, banks are basically highly-leveraged bond funds with payment services attached, and we treat it as normal to keep our savings in them.”
- #[0]
Discussion
What’s interesting is that no one uses cash anymore, everyone just uses a credit card and then pays it off (optimistically).
Point being that people used to have a portion of their spending in physical cash outside of the bank, but now almost all cash is in the bank, and the bank has been taking advantage as everything has moved digital.
Specifically in the US. In Canada aren’t the capital controls a lot tighter dr Jeff?