Registered: Jun 2011
09-29-12 05:12 PM
cool, I finally got a brownie point from you. Just wait, I am reading the Soros lectures you recommended. In just a few short days I will be an expert on "negative feedback"
Quote from piezoe:
Oldtime made an important point when he wrote:
"the USA and the Federal reserve is a model most emerging economies envy and are striving for. Just look at Europe, with a strong Federal Reserve they wouldn't be in the shape they are in now.
Your idea to eliminate risk from lending is quite naive. There can be no lending without the risk of default."
If you look closely at bank and savings and loan failures since the advent of the formation of the 2nd Central Bank in the U.S., you will find that the reasons for all of them are well known, as are the remedies. No matter what, however, there will always be the rare instance of crime . This can not be avoided, but it is no reason to declare the banking system a failure. William Black has both spoken and written widely on this topic. If you do a search you will easily turn up all of the information needed to understand these various banking crises and their remedies.
These crises don't in any way cast doubt on the very great public value of the U.S. fractional reserve banking system, they simply teach us that good regulation and wise enforcement is needed, and that we must not ignore the lessons of the past.