History 2186A/B Lecture Notes - Lecture 4: Currency Crisis, Financial Instrument, Scapegoating
10 Feb 2020
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Introduction: losing your job, your money, your savings, who gets blamed, the entire financial system operates on faith/trust, the word credit is routed in the word credo which means belief. However, this has not been around for a long time. Back in the day, you would have to trust that you are getting what you had exchanged for, and because we have private mints this problem can happen often abuse started happening; clipping, debasing, and eventually counterfeit. Large number of dispositors request their assets be liquidated, and that is your right to do that. This becomes circular other people would want to do this to. The problem is, banks are not required to have x amount of money in the bank. The money could be elsewhere such as mortgages, so when a large number of people walk in asking for their money, they have a problem.
