Banks make their money from depositors by lending to others. Banks lend out almost all the money they have on deposit and this means that there could be a bank panic if a lender can’t retrieve their deposits. The banks are supposed to hold a percentage of every dollar in reserves, which means they have a large pile of money. The last time the banks were able to lend out their reserves… we found ourselves in a global financial crash! Dr. Richard Wolff explains to Thom how all this works.