The Real Great Depression (Panic of 1873)

[carlsbadworker]

I think it is unfair to criticize the fractional reserve system. The banking industry has turned into a commodity business and it is tough to make money in such kind of industry. As HLS points out recently, “I don’t know of any other business that sells something for $400,000 and only makes $1080 gross”. Without fractional reserve system, the banks will all die because they really have no profit margin at all.
I don’t think there is a solution to that. Risk takers in the banking industry will always get awarded for the short term. The government can regulate the hell out of it but there will always be loopholes.
The same will gradually apply to all businesses that turns into commodity business. They make up their margin by quantity… which is essentially excessive inventory that will kill them in times of economy trouble. The only way is for business and the country to innovate itself out of the poor industries (and let the Asian countries deal with it), but American has become too stupid and lazy to make steady innovations.

[peterb]

I think fractional reserve is mostly a good thing. But it’s like a friendly pit bull. It’s all great until it turns on you, then it’s a world of hurt. When any business is allowed to operate at a ratio of 30 to 1 for cash outlays, it needs to be very highly and closely regulated. Because if it goes off the tracks, it’s a huge train wreck. And here we are. 5 solid years of highly unregulated fractional reserve lending. Ka BOOM!!!!

[peterb]

I think fractional reserve is mostly a good thing. But it’s like a friendly pit bull. It’s all great until it turns on you, then it’s a world of hurt. When any business is allowed to operate at a ratio of 30 to 1 for cash outlays, it needs to be very highly and closely regulated. Because if it goes off the tracks, it’s a huge train wreck. And here we are. 5 solid years of highly unregulated fractional reserve lending. Ka BOOM!!!!

[peterb]

I think fractional reserve is mostly a good thing. But it’s like a friendly pit bull. It’s all great until it turns on you, then it’s a world of hurt. When any business is allowed to operate at a ratio of 30 to 1 for cash outlays, it needs to be very highly and closely regulated. Because if it goes off the tracks, it’s a huge train wreck. And here we are. 5 solid years of highly unregulated fractional reserve lending. Ka BOOM!!!!

[peterb]

I think fractional reserve is mostly a good thing. But it’s like a friendly pit bull. It’s all great until it turns on you, then it’s a world of hurt. When any business is allowed to operate at a ratio of 30 to 1 for cash outlays, it needs to be very highly and closely regulated. Because if it goes off the tracks, it’s a huge train wreck. And here we are. 5 solid years of highly unregulated fractional reserve lending. Ka BOOM!!!!

[peterb]

I think fractional reserve is mostly a good thing. But it’s like a friendly pit bull. It’s all great until it turns on you, then it’s a world of hurt. When any business is allowed to operate at a ratio of 30 to 1 for cash outlays, it needs to be very highly and closely regulated. Because if it goes off the tracks, it’s a huge train wreck. And here we are. 5 solid years of highly unregulated fractional reserve lending. Ka BOOM!!!!

[patb]

[quote=Aecetia]How Taxes Reduce Savings
by Daniel J. Mitchell, Ph.D.

“The fact that Americans save very little today should come as no surprise. Federal taxes–which are at an all-time high–significantly lower the income that Americans could save and use for capital formation. Even worse, the tax burden on savings and investment is much heavier than the tax burden on consumption.”

http://www.heritage.org/Research/Taxes/BG1309.cfm
[/quote]

nothing personal but the heritage guys are all cocksuckers.
not one of them was worth a damn intellectually

[patb]

[quote=Aecetia]How Taxes Reduce Savings
by Daniel J. Mitchell, Ph.D.

“The fact that Americans save very little today should come as no surprise. Federal taxes–which are at an all-time high–significantly lower the income that Americans could save and use for capital formation. Even worse, the tax burden on savings and investment is much heavier than the tax burden on consumption.”

http://www.heritage.org/Research/Taxes/BG1309.cfm
[/quote]

nothing personal but the heritage guys are all cocksuckers.
not one of them was worth a damn intellectually

[patb]

[quote=Aecetia]How Taxes Reduce Savings
by Daniel J. Mitchell, Ph.D.

“The fact that Americans save very little today should come as no surprise. Federal taxes–which are at an all-time high–significantly lower the income that Americans could save and use for capital formation. Even worse, the tax burden on savings and investment is much heavier than the tax burden on consumption.”

http://www.heritage.org/Research/Taxes/BG1309.cfm
[/quote]

nothing personal but the heritage guys are all cocksuckers.
not one of them was worth a damn intellectually

[patb]

[quote=Aecetia]How Taxes Reduce Savings
by Daniel J. Mitchell, Ph.D.

“The fact that Americans save very little today should come as no surprise. Federal taxes–which are at an all-time high–significantly lower the income that Americans could save and use for capital formation. Even worse, the tax burden on savings and investment is much heavier than the tax burden on consumption.”

http://www.heritage.org/Research/Taxes/BG1309.cfm
[/quote]

nothing personal but the heritage guys are all cocksuckers.
not one of them was worth a damn intellectually

[patb]

[quote=Aecetia]How Taxes Reduce Savings
by Daniel J. Mitchell, Ph.D.

“The fact that Americans save very little today should come as no surprise. Federal taxes–which are at an all-time high–significantly lower the income that Americans could save and use for capital formation. Even worse, the tax burden on savings and investment is much heavier than the tax burden on consumption.”

http://www.heritage.org/Research/Taxes/BG1309.cfm
[/quote]

nothing personal but the heritage guys are all cocksuckers.
not one of them was worth a damn intellectually

[paramount]

Very good post, of course the question of the day is are we going into a wide spread depression in the US?

Are you currently stocking up on water, canned and dry goods?

[paramount]

Very good post, of course the question of the day is are we going into a wide spread depression in the US?

Are you currently stocking up on water, canned and dry goods?

[paramount]

Very good post, of course the question of the day is are we going into a wide spread depression in the US?

Are you currently stocking up on water, canned and dry goods?

[paramount]

Very good post, of course the question of the day is are we going into a wide spread depression in the US?

Are you currently stocking up on water, canned and dry goods?

[Author]

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