How do they become so powerful, and how do they grow?
Edit:to clarifyn i know how the process of banking works, I mean like how do you get from being a small local bank to JP morgan chase in new york. How do they possess the power to repossess property.
In: Economics
Banks don’t just throw your money in a vault and let it sit there. They take the money you give them and invest it. This is usually in the form of loans. Things like car loans and mortgages that they charge interest on.
When you put money in the bank, the balance they show you is more of an IOU than a statement of how much money you have.
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