Gary B. Gorton > Quotes

“Debt exists because it minimizes secrets. Bank debt is designed to be secret-proof, and thus liquid;”
― Gary B. Gorton, Misunderstanding Financial Crises: Why We Don't See Them Coming

“The U.S. National Bank Acts and the adoption of federal deposit insurance requirements in the United States were two momentous acts of the U.S. Congress that changed the way that money produced by banks was backed. The legislation also raised questions about the essence of money, its purpose, and how it should be backed, questions that come up over and over again.”
― Gary B. Gorton, Misunderstanding Financial Crises: Why We Don't See Them Coming

“A financial crisis in its pure form is an exit from bank debt, a bank run. This is an inherent problem in market economies.”
― Gary B. Gorton, Misunderstanding Financial Crises: Why We Don't See Them Coming