In his great book The Limits of Capital David Harvey talked about the positive side of banking. Banks are supposed to make loans to promising social projects that have to do with infrastructure, goods and services. Banks can fund the local community when the organizers of these social projects do not have the money to get their project off the ground. Banks have real reserves and do not invest in financial speculation. Since capitalist banks do none of these things, Michael Hudson’s answer is…public banking.
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