[markvdb]

The problem of course being that banks have a heavily regulated oligopoly on the _creation_ of money. Banks have a right to lend (a lot) more than they have deposits and capital. Think fractional reserve banking. They effectively create money out of thin air. Kickstarter and friends can't do that.

But the tech sector may come start scratch at the edges. I hope so, together with you!

[mikeash]

Fractional reserve banking doesn't mean you lend more than you have. It merely means you keep less money on hand than the sum total of your deposits and capital. This "creates money" because the depositors still act like their deposits are 100% present, and the debtors have some of that same money to spend. Banks aren't lending more money than the deposits and capital they hold.

[mathattack]

Kickstarter and friends can't, but there are other tech options for creating money, or money-like instruments. Bitcoin and Zynga points are some first steps in that direction. IOUs could be another. Any firm that can give credit is also a move towards money.