Kling on banking

Arnold Kling writes about his Thoughts on Banking and Thoughts on Banking: An Example. With regard to the first posting he writes

This post returns to the deep topic of banking theory. I am very unhappy with the state of banking theory in economics. People make very strong empirical claims about what they call the risk-taking process based on shallow thinking about that process. I think that Mencius Moldbug is giving the wrong answer, but at least he is asking the right question, which is more than I can say for, well, just about the entire economics profession.

This stuff is for the macro geeks among us.