Banks add value by aggregating dispersed savings (safer than burying money) and lending it out, profiting from the spread between deposit and loan rates, which is why accumulating money in one secure place is more efficient than mattresses and backyards.
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Speaker
Michael MungerEvidence Quote
“what bankers do in some ways is they pull together savings that a number of people have and are willing to give to the bank because maybe it's safer than burying it in the yard and the banks take that money and then they loan it to someone else”
Created: 6/17/2026, 10:29:24 AM
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