Mark Twain on banking problems

As Mark Twain once remarked, “If a man owes a bank a dollar and cannot pay, he has a problem. If he owes it a million and cannot pay, it has the problem.” If that happened today, the lender’s bank would probably sell some of that debt to another bank, which would buy it with money borrowed at 40 times its own capital. To Mark Twain’s admonition we may add this: If a bank owes another bank a billion and cannot pay, everyone has a problem.

From this excerpt at NPR. Take a look!


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