00:01
Hey guys, so let's take a look at this scenario we have today.
00:04
So let's suppose you have about $10 ,000 and you're going to deposit it into a savings account at a bank in order to earn about, you know, say 1 % interest per year.
00:15
And so, you know, a person who borrows from the bank in order to make a big purchase may have to pay an interest of 5 % per year on the loan.
00:28
And like, like, let's assume for simplicity that they're borrowing the same amount as we so our question today is kind of why not just cut out the bank the intermediary here and lend money directly to the person who wants to make the purchase.
00:44
And it's a pretty simple question, but basically a bank at the end of the day is a necessary part of the economy's financial system.
00:54
The role of this system is basically to transfer money.
01:05
From savers or borrowers...