Comments by "earthstick" (@earthstick) on "Huge Bank Bail Outs Happening Right Now (u0026 How To Prepare Your Finances)" video.

  1. Why are banks still investing (lending) to each other? Follow the logic, if A invests in B then A takes a share of B’s profit via interest. But B’s profit comes from lending to C. So why doesn’t A lend to C directly? Then A is able to decide if C is a good borrower and thus control their exposure to risk. If A lends to B then A has to trust B’s competency.
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