As for the issue of reserves, I think if you make the argument you are making you have to state what you think the optimal reserve requirement is. If the recen

As for the issue of reserves, I think if you make the argument you are making you have to state what you think the optimal reserve requirement is. If the recent crisis had been a bit smaller, existing reserve levels would have been fine. If the crisis had been a bit bigger, then it's not certain whether even the previous reserve requirements would have been sufficient. The only way you get 100% security is to have a 100% reserve requirement. Anything less is gambling. So if you critique the lowering of reserve rates you are obligated to state what sort of odds you think are more reasonable.