Regulations around government debt lead to crisis

Put briefly

By much favoring banks holding “safe” government debt and residential mortgages (demand-carbs) than loans to “risky” small businesses and entrepreneurs (supply-proteins), way too much debt has been generated against a weakly obese not muscular economy. Of course, in the process, bureaucracy autocracies were empowered, and houses transformed from home into valuable investment assets.

An overview of settlement

There was much comment about how expensive or difficult this would have been in the regular banking system – and this could well be true. But it also highlighted another point: in my expecience, almost nobody actually understands how payment systems work. That is: if you “wire” funds to a supplier or “make a payment” to a friend, how does the money get from your account to theirs?