Money is just green pieces of paper. It's a liability in the sense that it's losing value to inflation sitting in a vault doing nothing.
However, the Fed used to mandate banks keeping a 10% reserve requirement (hence the term "fractional reserve banking") to mitigate bank runs. It's essentially the banking version of an emergency fund; you're not supposed to invest or profit from insurance.
(As an aside, the number of dipshits I see wanting to invest their e-fund pre-2022 so they "don't lose to inflation" was too damn high.)
But then the Fed dropped the reserve requirement in March 26, 2020 in the guise of Doing Something™ during the manufactured COVID pandemic and lockdowns. Now they're surprised_pikachu.jpg at the unintended consequences and moral hazard of yet another government-created problem.
Money is just green pieces of paper. It's a liability in the sense that it's losing value to inflation sitting in a vault doing nothing.
However, the Fed used to mandate banks keeping a 10% reserve requirement (hence the term "fractional reserve banking") to mitigate bank runs. It's essentially the banking version of an emergency fund; you're not supposed to invest or profit from insurance.
(As an aside, the number of dipshits I see wanting to invest their e-fund pre-2022 so they "don't lose to inflation" was too damn high.)
But then the Fed dropped the reserve requirement in March 26, 2020 in the guise of Doing Something™ during the manufactured COVID pandemic and lockdowns. Now they're surprised_pikachu.jpg at the unintended consequences and moral hazard of yet another government-created problem.