Today we discuss how banks lend, and why the idea that bank deposits limit bank lending is plain wrong and helps to explain why home prices have exploded in recent years. https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy The Housing Affordability Myth: https://youtu.be/f1Ift5Hg-C4 Find more at http://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts Please consider supporting our work via Patreon: https://www.patreon.com/DigitalFinanceAnalytics Or make a one off contribution to help cover our costs via PayPal at: https://www.paypal.me/MartinDFA Please share this post to help to spread the word about the state of things.... Caveat Emptor! Note: this is NOT financial or property advice!!