3 ms·

It all comes back to fractional reserve banking. It is the root of all evil in our financial system. If Rothbard could only see the current state of affairs...

• VulgarExigency 4mo ago
  Rothbard would probably lament that we have not yet turned children into "financial products" as well. https://mises.org/mises-daily/children-and-rights https://mises.org/mises-daily/children-and-rights
• pjc50 4mo ago
  This is a crank opinion that is somehow everywhere. The building is real, it's not fractional.
  • weli 4mo ago
    The bank lended more money than it has in reserves allowing for speculation and extra inflation of perceived value of an asset
    • quickthrowman 4mo ago
      [dead]
• Ekaros 4mo ago
  You do not even need fractional banking for this. Same thing could happen without it. Someone lends money and is unable to pay it back. Both sides pretend that things will eventually go well. As at least on paper they have not lost anything until prices are realised.
  • weli 4mo ago
    Without fractional banking the bank needs to be way more cautious when appraising an asset and be more conservative with the future gains estimation. Decreasing speculation and inflation of value.
  • inigyou 4mo ago
    That almost describes fractional banking.
• Sohcahtoa82 4mo ago
  How do you imagine people would get car loans and mortgages without fractional reserve banking? Where do banks get the money to loan out to people if they're not using the deposits from other members of the bank?