This is not a radical idea though many will try to characterize it as such. 100% reserves for banks is actually quite a “conservative” idea.
With 100% bank reserves the credit addicts will scream and holler. The bankers will scream and holler. (Often they are one and the same.) Our economy however would be healthier.
If we can’t end it tomorrow, at the very least it should be audited completely.
Over the last 25 years we’ve gone from one Fed created bubble to the next. Now the central banks of the world are pushing into new frontiers of money printing and they are likely creating a bubble which will result in an unprecedented bust.
Wall Street firms have swept in buying up foreclosed homes all over the country with the idea of becoming “super landlords.” If a firm can buy up a a hundred rental units at a reasonable amount with virtually free money (which is likely to remain free for a good while) and then turn around and rent the units to the people who have been foreclosed on, then hey, why not?
This is yet another example of how all the Fed’s printing is benefiting the firms which originally were saved by TARP even though they should have died.
Another good one from Stockman. We’ll stop the parade o’ Stockman in a bit. In the meantime, enjoy.
About sums it up.
It’s not just Greenspan, suddenly it’s respectable to come out against the Federal Reserve. The attached article is a case in point.
Why did Rome fall? There are many reasons. Some think a big contributor was poisoning from lead pipes.
While there was too much of one metal in the lives of Romans, it was a lack of other metals, the precious kind, which may have done as much as bad plumbing to bring down the Empire.
We now have the announcement that Ben Bernanke’s Fed will buy $45 billion a month in treasuries, QE4, until unemployment reaches 6.5% or his version of inflation exceeds 2.5%. What a surprise!
