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I think you can only make the argument that this represents some fundamental failure if it didn't work. Obviously it hasn't all played out yet but thus far it's
by tootie 4y ago
I think you can only make the argument that this represents some fundamental failure if it didn't work. Obviously it hasn't all played out yet but thus far it's doing what it's intended to.
If you think reserve banking isn't stable then neither is capitalism or democracy. Human beings are not stable so any system that can flex without breaking is doing as well as anything we've ever come up with.
- alxmng 4y agoReserve banking would be very stable if the central bank did it. If everyone had deposit accounts at the Fed, there would be no possibility of bank failure and no need for any kind of deposit insurance. And banks that issued loans going bankrupt wouldn’t threaten borrowers (since their money would be in their treasury account, not in the banks account).