2. How that All Come to Be?

Finance is, always was and always will be a source of instability. By putting volatility into motion and controlling it, finance provides tremendous service. Bankers create money out of thin air—how could that be stable? The fruits of this instability facilitate trade, production and employment for improving people’s lives. The emergence of finance in the late thirteenth century facilitates the development of long-distance trade, ending medieval autarchy. The finance converts debt into money, removing limitations for business emerging from a limited amount of specie. Its attraction to law and order turned the rule of law into a competitive advantage. The price for all the benefits we have from finance is instability. Banking supervision has a task to keep it on the check.