tag:blogger.com,1999:blog-1913236063367282275.post1472723176289035909..comments2014-09-18T15:22:57.599+09:30Comments on John J McVey: Fractional Reserve Banking, revisted - Part OneJohn McVeyhttp://www.blogger.com/profile/09178461877060724170noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1913236063367282275.post-3404027838427426562010-09-26T06:42:46.580+09:302010-09-26T06:42:46.580+09:30Savings? that is, real stuff?
From past comments ...Savings? that is, real stuff?<br /><br />From past comments most people would think that I was a rabid fractional banking proponent. But that was only in opposition to making the practice illegal (as I understand the arguments in favor of legislation against fractional banking).<br /><br />But, your discussion clearly presents the problems associated with multiples of specie being created, and I'm not a big fan of that either. It would seem that bank profitability would encourage credit creation. On the other hand, a banker has to recognize that system wide high levels of credit would not be healthy and he would seek to protect the bank's soundness (learning how to run a bank in a free economy is a lost art and would have to learned again, probably painfully).<br /><br />Fundamentally, it is savings, and freedom. I am looking forward to parts 2 & 3.Unknownhttps://www.blogger.com/profile/13402981352001291282noreply@blogger.com