Funny Money
I’ve always hated banks — and insurance companies (it’s a toss-up). I realize how important the financial industry is to the world’s economy, and as a very middle-class person (increasingly lower middle class, given our single income household, inflation, etc.), the amount of wealth that gets thrown around by irresponsible people, and the economic inequality experienced by so many others, really gets to me.
That said, banking and finance on a large scale, on a national and global scale, are mysteries to me. I can keep track of my own money. I’ve taken a few economics courses, so I have a minimal understanding of micro and macro. I listen to the news. But I don’t really know what’s going on, and this is a problem because I can’t be an informed and responsible citizen, voter, and consumer when so much is at stake.
Since 2008, economists and analysts have been trying to make sense of what happened. There have been any number of global economic meltdowns over the last century, starting with the stock market crash in 1929 and the Great Depression. Most recently, last year, a number of major banks failed yet again — and predictably they were bailed out. We’ve all heard the phrase: “too big to fail.” Recently, I learned another phrase: “too big to save.”
I’ve been waiting for someone trustworthy to explain to me what’s going on. I think I’ve finally found someone excellently credentialed and an expert and reliable source, who nevertheless prioritizes keeping the issues accessible. Anat Admati is a strong advocate for keeping lay people in the loop, not excluding them, and most importantly not bamboozling them.
Prof. Admati to the Rescue
First, this video:
Second, Admati’s book, new edition:
Green Your Banking
Third, for something you can do now about your banking, where divesting from fossil fuels is concerned, Live Susty has recently posted on getting your green banking act together.
Visit the Fed
Finally, if you feel a need to explore more on economics, federal banks, or banking in general, the St Louis Fed has an impressive number of online educational resources, including a couple 1) good 2) blogs; and another one 3) data-driven with lots of graphs. The website provides an extensive range of teaching resources, occasional publications (including video and podcast), and many high level research reports. Feel free to have an explore.
If you’re in the neighbor, you can even visit in person and tour the museum!
