Economists have begun seriously discussing the idea of banning banks. That seems ridiculous and far-fetched, but the idea might not be as crazy as it sounds. But before we get to the idea, there's something important that needs to be addressed, which is that people tend to have a gross misconception about what a bank does. The typical person probably thinks about a bank the way it's depicted in the movie It's A Wonderful Life. In the scene below, George Bailey's savings and loan is being caught up in a run on the banks. Bailey is forced to explain to the depositors that their money isn't in the vaults because it's ... (full story)