> they are giving you their money They create that money by crediting your check... | Hacker News

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zrail on Jan 22, 2019 | parent | context | favorite | on: $1.2T in risky corporate debt showing similar warn...

> they are giving you their money

They create that money by crediting your checking account (their liability) and debiting your loan account (their asset).

jussij on Jan 22, 2019 [–]

But you missing one step where they credit your loan account by debiting their loan book account.

Also your loan account is not a bank asset, it is a bank liability.

It is money the bank might not get back.

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