A bank should have the assets to pay off their liabilities, a Ponzi scheme, not so much.
“A bank should have the assets to pay off their liabilities”
Agreed, but they do not hold enough cash to pay off all their depositors at once. That’s why a bank run is always bad. The money you deposit is loaned out to others in the form of mortgages and car loans. Try cashing a large check or withdrawing several $thousand on a Friday. Most banks hold limited cash. The main difference is with a bank, you MAY eventually get your money. A Ponzi scheme, not so much.