Frances Coppola, an economist and writer, explains banking, money creation, and crypto failures in plain terms.
Commenters call her FTX-Alameda explainer excellent, praise her Voyager analysis, and point to her blog for correcting textbook errors on credit creation.
I'm don't know of a good textbook that explains it well. But for an example of a textbook that gets it wrong, see Mankiw's introductory macro book. Mankiw alludes to the important brake on credit creation (capital constraints), but dismisses them as 'arcane', then goes on to describe a fractional reserve system that doesn't really exist anymore.
I've pieced together what I can from reading blogs (Frances Coppola [0] is very informative in this regard). The Bank of England wrote a document explaining their view of the process of money creation [1], which is widely accepted as correct.
Edit: actually, this might do:
http://neweconomicperspectives.org/money-banking
[0] http://www.coppolacomment.com/
[1] http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q102.pdf
"The FTX-Alameda nexus"
https://www.coppolacomment.com/2022/11/the-ftx-alameda-nexus.html
Excellent explanation.
Appears to be confirmed by the WSG
"FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall"
https://archive.ph/nZNmw
Original: https://www.wsj.com/amp/articles/ftx-tapped-into-customer-accounts-to-fund-risky-bets-setting-up-its-downfall-11668093732
Maplin apparently had operating profits but accounting losses in the few years before it failed: http://www.coppolacomment.com/2018/03/the-sad-story-of-maplin-electronics.html
As you can see, 15% interest rates will do that. But this is one of those weird PE setups where the left hand is lending to the right hand.
https://medium.com/@jonaldfyookball/mathematical-proof-that-the-lightning-network-cannot-be-a-decentralized-bitcoin-scaling-solution-1b8147650800
http://www.coppolacomment.com/2018/01/probability-for-geeks.html
http://www.coppolacomment.com/2018/01/lightning-and-fat-controller.html
Specifically, the commonly cited "accelerating inflation" refers to the third derivative of price with respect to time. Interestingly, more physicists seem to understand this than economists: https://www.coppolacomment.com/2021/05/calculus-for-economists.html
https://www.coppolacomment.com/2022/07/the-sinking-of-voyager.html posted on hn in the past few days is an excellent read about voyager and in particular explains the whole FDIC insured claim, how it was technically true but also quiet useless.