How does the finance system work?

The way we use banks

The money we deposit in current accounts, savings accounts, fixed-term deposits, etc., goes into the enormous pot of money banks have at their disposal. They use it to participate in the productive economy, i.e. in the activities of businesses, in two ways: by providing credit (lending money to businesses to carry out their activities) and investing (banks hold shares in companies, which provides capital for the companies and income for the banks, in the form of dividends or increased share values).

Banks can also use our money to invest in financial markets (buying stocks, currency, real estate, etc.) and they participate in the casino economy (short-term speculative operations that can generate high returns).