The Shocking Truth About How Banks Really Work

Since the Punch magazine article was actually published in 1957, uh if you don't mind, let's fast forward to 2026. And I'd like to ask you eight rapid fire questions with yes or no answers. What? Pop quiz? For Ed? Yes or no. No maybes. Right. Yes or no, maybe. Did you know you signed up for this? No, no, I didn't know that. You didn't. punishment. If I don't answer correctly, what happens? All right. One. Banks exist to make money for themselves, not customers. Still true today? Very true. Depositors are effectively lending money to banks. Fair statement? Fair. Banks don't actually have the money they lend. True in modern banking? Yes. The same dollar can exist in as both an asset and as a liability. Still how the system works? Yes. Banking depends on most people not withdrawing their money. Yes. If everyone withdrew funds at once, the banking system would collapse. Well, it depends on how you define the word. Oh, that's not a yes or no, is it? But if you say withdraw, there's a lot of money in circulation that can't be withdrawn directly. It has to go back into the banks and then ...