Ilseop Lim

“And while the FDIC had emergency authority to wind down failing commercial banks in a swift and orderly fashion, no one had the authority to step in to avoid a chaotic bankruptcy of a major nonbank, to inject capital into a nonbank, or to guarantee its liabilities.”
― Ben S. Bernanke, First Responders: Inside the U.S. Strategy for Fighting the 2007-2009 Global Financial Crisis

“Modern developments have eased the intensity of the ancient struggle between creditors and debtors. Stock markets and limited liability have provided an alternative to bank borrowing for raising capital, and the penalties for default have been progressively relaxed. We no longer demand labour services of defaulting debtors, or send them to prison. Debt-bondage is a shadow of its old self.”
― Robert Skidelsky, Money and Government: A Challenge to Mainstream Economics

“Even when state money became paper, and therefore intrinsically worthless, it was thought desirable to maintain belief that government notes – promises to pay the bearer – were in fact debt certificates backed by gold. Until 1971, the value of the American dollar was widely believed to depend on its convertibility into gold, as though the value of gold guaranteed the value of paper dollars.”
― Robert Skidelsky, Money and Government: A Challenge to Mainstream Economics

“Unlike the quantity theory of money, which is a ‘supply of money’ story, the credit theory of money is a ‘demand for loans’ tale. The amount of money fluctuates with the demand for loans and the creditworthiness of borrowers; and both fluctuate with the state of business.”
― Robert Skidelsky, Money and Government: A Challenge to Mainstream Economics