I agree with Breeze on this one. Fractional reserve is like a pit bull. Very useful if kept in check. But can be very bad if allowed to get outta hand. Which every so many decadeds seems to happen. Human nature I suppose. Creating money outta thin air is just too tempting to be kept at bay for too long. Steven Keen has some really interesting insight on his website about this.
But look at countries with undeveloped banking systems, they suck. It’s a good thing, it just needs careful oversight.
The FDIC insures deposit at a certain limit. It is not nationalization. It does not protect investors, debt holders or the solvency of the bank. That’s all been happening illegaly by our govt at this time. But it’s not the FDIC.
