In this episode of Saturday Morning Muse, Andy explores the concept of compound interest, discussing its historical significance and mathematical foundations. He introduces Benjamin Franklin's experiment with compounding, the contributions of mathematicians like Edmund Halley and Leonhard Euler, and the implications of compounding in both wealth creation and destruction, illustrated by the Tulip Mania and government debt crises. The episode emphasizes the importance of patience and long-term thinking in financial growth.

The global banking system thrives because of the unwritten social contract that exists between banks, their investors, and clients (individuals, businesses, and institutions). The banking system relies on the willingness of its customers to understand that loans (assets) are supported by deposits (liabilities) and that the predictability and reliability of the relationship between assets and liabilities is what keeps the doors of the bank open. Said differently, the entire system relies on investor and depositor confidence.