Alan Kohler: Banking is a paradox at the heart of capitalism

Banking is a confidence trick, but preserving the trick has meant that banks have become arms of the state, writes Alan Kohler.

Banking is the confidence trick that lies at the heart of capitalism, but preserving the trick has meant that banks have become arms of the state.

The banking crisis gripping the US and Europe is the inevitable result of the past 12 months of rate hikes – it (almost) always happens.