Has the low cost of online banking removed the need for fractional reserve banking? Why does a basic checking account need to have economy destroying risks?
Because money. Yes to any reasonable person your bank account is money not intended for gambling, but that's not how bankers see it. They're in an industry where appearance is everything.
As long as you drive a Tesla and never have to cook in your Italian marble kitchen (I don't know and don't care if it's a thing, just making a point) it doesn't matter if it's all debt. The entire point of our economy is to kick it downhill and have someone else pay for it.
Nothing grows indefinitely, we all know this, but we pretend economy is different.
If the bank can't lend out your money that's in your checking accounts, then they'll have to make money another way. Online banking makes the cost tiny and easy bare.
Fractional reserve banking seems like an absurd way of paying for banking.
As long as you drive a Tesla and never have to cook in your Italian marble kitchen (I don't know and don't care if it's a thing, just making a point) it doesn't matter if it's all debt. The entire point of our economy is to kick it downhill and have someone else pay for it.
Nothing grows indefinitely, we all know this, but we pretend economy is different.