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Showing posts from December, 2018

Checking accounts are promises, not titles

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Modern finance turned property titles into financial assets. A stock use to be a property title to a company. Today, most stocks are promises to profits or dividends, not the ownership nor the control of a company. Samewise, at some point, checking accounts werr just titles to the reserve in a bank. Today, checking accounts are promissory notes; promises to make payments on demand the bank makes.