Comment by tharkun__
1 day ago
Technically true I suppose. But go ask the average person on the street where the bank gets the money they lend people for mortgages and cars and such and I guarantee you the number of people that make that connection is going to be much much smaller than you seem to want to suggest.
It doesn't actually work the way it's portrayed in It's a Wonderful Life. The banks don't use depositor money to make loans. I suspect you will think what they actually do is even worse. Look into fractional reserve banking.
Never seen that movie but did watch a documentary ages ago about fractional reserve banking yes.
The bank still uses the deposit money in that system. You are right to point out those same people on the street I mentioned would freak out even more if they knew that banks essentially lend out more than we deposited and also that they might sell your debt and all that jazz (I bet most people either never understood what happened in 2008 or forgot already other than a vague "yeah mortgage crisis")