Part 4 Dialogue on Moral Hazard, fixing the financial sector and certainty of knowledge:
Cross-posted from “we build our society” Facebook group: https://www.facebook.com/groups/webuildoursociety/426292260807996/?notif_t=group_comment#!/groups/webuildoursociety/permalink/426598337444055/
Terry, 2007-09 flow from various government interventions, not limited to those I just outlined, that served the purpose of blowing a bubble and freeing those playing with money from personal responsibility. This meant that smart men focussed on how they could game the system for their own profit. It happened continually and is still underway, though 1994 in Boca may be a good example.
Doug, [Jekyll Island 1913] was just the creation of the Fed (and just part of my item(3) above); the roots go much deeper to other state interventions I noted. The pre-Fed booms/panics also flowed from the state-level creation of banks as corporations and monopolies, and interventions to save banks that essentially broke promises to depositors by creating un-backed paper money. See Rothbard’s History of Money and Banking in the United States, http://mises.org/books/historyofmoney.pdf
Recent Comments