Ilseop Lim

“The state has only a limited incentive to guarantee the value of money. The reason is that it can always produce the money necessary to defray its expenses, either by debasing the coinage when money is metal or by printing more of it when it is paper.”
― Robert Skidelsky, Money and Government: A Challenge to Mainstream Economics

“Low-quality mortgages ended up imperiling the entire financial system—not so much because of the direct losses on the mortgages themselves, which were significant but likely manageable, but because of the securitization boom, which carved those mortgages into securities that became a ubiquitous form of currency and collateral throughout the system.”
― Ben S. Bernanke, First Responders: Inside the U.S. Strategy for Fighting the 2007-2009 Global Financial Crisis

“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

“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