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.

Thom is a four-time Project Censored-award-winning, New York Times best-selling author. His national daily progressive radio talk show is distributed to radio stations nationwide by Westwood One, Pacifica, and Free Speech TV. More people listen daily to the Thom Hartmann Program than any other progressive talk show in the nation.