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Patrick McKenzie

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What They Said

“But even if you look at your like retail checking account statement, the number that you believe is your balance is like not necessarily your balance. That is the rollup of a number of credit decisions that your bank has made on your behalf.” — Patrick McKenzie, Complex Systems with Patrick McKenzie (patio11)

McKenzie and Alex Elliott spend the episode on the plumbing between banks and brokers: who extends credit to whom, and what happens when a counterparty vanishes overnight. He arrives at the retail version almost in passing, as an aside about how far credit reaches down. The turns on either side are about prime brokers and the 2008 collapses, which is the scale at which this point is usually made.

Complex Systems with Patrick McKenzie (patio11) · 2026-08-20 Context → Listen →

Where They Turn Up

Complex Systems with Patrick McKenzie (patio11) 1