The 1966 Credit Crunch That Invented Modern Banking

Episode 35 takes us to 1966, when a quiet squeeze in bank lending triggered something that had never happened before: banks actually turned away customers. Lucas and Luna unpack the 'credit crunch' that forced the Federal Reserve to invent modern monetary targeting, reshaped how banks manage liquidity, and gave us the vocabulary we still use today—from certificates of deposit to the federal funds rate. It's a story about a small regulatory change, a panic in the bond market, and a lesson in how central banks learned to talk to the public. If you've ever wondered why your bank calls you about loans, this episode traces it back to one hot summer in the mid-sixties. #CreditCrunch1966 #FederalReserve #MonetaryPolicy #BankingHistory #CertificatesOfDeposit #Disintermediation #WilliamMcChesneyMartin #RegulationQ #LiquidityCrisis #CentralBanking #Economics #FexingoBusiness #BusinessPodcast #EconomicHistory #1960sEconomy #MoneySupply #FedFundsRate #BankingInnovation Keep every episode free: buymeacoffee.com/fexingo