Finance and the Macro

The internet is a specatular institution.  The financial chaos and employment woes are resulting in one of the most difficult economic times of my generation, and I am able to follow what the great minds are thinking through blogs.

For example, talking heads on the news keep stressing how important the financial sector is for the economy as a whole -- but why?  They never say. I doubt they really know.

But the gents at EconLog do.  See this posting for a superb economic story demonstrating the role of ordinary banks in creating economic wealth.