What is Replacing Traditional Banking?

The economy of the world is changing. In 2008 the banking system came close to collapse because the banks had leveraged their deposits and forgotten that when times gets bad, leverage wipes out assets when times are bad just as effectively as leverage makes money when times are good. The banks were too big to fail, because they would have lost people’s deposits if they were put into insolvency. Most businesses are too small to matter, if they go broke, but this was not the case with the banks. Continue reading