The Real Great Depression (Panic of 1873)

[Arraya]

Owners of capital will stimulate the working class to buy more
and more expensive goods, houses and technology, pushing them
to take more and more expensive credits, until their debt
becomes unbearable. The unpaid debt will lead to bankruptcy of
the banks, which will have to be nationalized, and the State
will have to take the road which will eventually lead to
Communism.”
Karl Marx 1867

[NotCranky]

I was thinking today about this very idea that you quoted Arraya.

What happens to the proletariat who have not taken the bait and who became solvent land owners instead? I sort of hope we never really have to worry about the answer to that question.

[NotCranky]

I was thinking today about this very idea that you quoted Arraya.

What happens to the proletariat who have not taken the bait and who became solvent land owners instead? I sort of hope we never really have to worry about the answer to that question.

[NotCranky]

I was thinking today about this very idea that you quoted Arraya.

What happens to the proletariat who have not taken the bait and who became solvent land owners instead? I sort of hope we never really have to worry about the answer to that question.

[NotCranky]

I was thinking today about this very idea that you quoted Arraya.

What happens to the proletariat who have not taken the bait and who became solvent land owners instead? I sort of hope we never really have to worry about the answer to that question.

[NotCranky]

I was thinking today about this very idea that you quoted Arraya.

What happens to the proletariat who have not taken the bait and who became solvent land owners instead? I sort of hope we never really have to worry about the answer to that question.

[barnaby33]

Without fractional reserve system, the banks will all die because they really have no profit margin at all.

Not true at all. Banks just have to learn to charge interest commensurate with risk. Those that do prosper, those that don’t die. What turned lending into a commodity business was the govt regulating who could get a loan and by what criteria. As soon as that happened, then yes banks are just brokers working off very thin margins. They aren’t taking any risk, so why a broker be an extremely profitable business?
Josh

[barnaby33]

Without fractional reserve system, the banks will all die because they really have no profit margin at all.

Not true at all. Banks just have to learn to charge interest commensurate with risk. Those that do prosper, those that don’t die. What turned lending into a commodity business was the govt regulating who could get a loan and by what criteria. As soon as that happened, then yes banks are just brokers working off very thin margins. They aren’t taking any risk, so why a broker be an extremely profitable business?
Josh

[barnaby33]

Without fractional reserve system, the banks will all die because they really have no profit margin at all.

Not true at all. Banks just have to learn to charge interest commensurate with risk. Those that do prosper, those that don’t die. What turned lending into a commodity business was the govt regulating who could get a loan and by what criteria. As soon as that happened, then yes banks are just brokers working off very thin margins. They aren’t taking any risk, so why a broker be an extremely profitable business?
Josh

[barnaby33]

Without fractional reserve system, the banks will all die because they really have no profit margin at all.

Not true at all. Banks just have to learn to charge interest commensurate with risk. Those that do prosper, those that don’t die. What turned lending into a commodity business was the govt regulating who could get a loan and by what criteria. As soon as that happened, then yes banks are just brokers working off very thin margins. They aren’t taking any risk, so why a broker be an extremely profitable business?
Josh

[barnaby33]

Without fractional reserve system, the banks will all die because they really have no profit margin at all.

Not true at all. Banks just have to learn to charge interest commensurate with risk. Those that do prosper, those that don’t die. What turned lending into a commodity business was the govt regulating who could get a loan and by what criteria. As soon as that happened, then yes banks are just brokers working off very thin margins. They aren’t taking any risk, so why a broker be an extremely profitable business?
Josh

[Anonymous]

[quote=arraya]Owners of capital will stimulate the working class to buy more
and more expensive goods, houses and technology, pushing them
to take more and more expensive credits, until their debt
becomes unbearable. The unpaid debt will lead to bankruptcy of
the banks, which will have to be nationalized, and the State
will have to take the road which will eventually lead to
Communism.”
Karl Marx 1867[/quote]

That quote is cool, but suspect…

http://meganmcardle.theatlantic.com/archives/2009/01/faux_marx.php

http://imgs.xkcd.com/comics/duty_calls.png

[Anonymous]

[quote=arraya]Owners of capital will stimulate the working class to buy more
and more expensive goods, houses and technology, pushing them
to take more and more expensive credits, until their debt
becomes unbearable. The unpaid debt will lead to bankruptcy of
the banks, which will have to be nationalized, and the State
will have to take the road which will eventually lead to
Communism.”
Karl Marx 1867[/quote]

That quote is cool, but suspect…

http://meganmcardle.theatlantic.com/archives/2009/01/faux_marx.php

http://imgs.xkcd.com/comics/duty_calls.png

[Anonymous]

[quote=arraya]Owners of capital will stimulate the working class to buy more
and more expensive goods, houses and technology, pushing them
to take more and more expensive credits, until their debt
becomes unbearable. The unpaid debt will lead to bankruptcy of
the banks, which will have to be nationalized, and the State
will have to take the road which will eventually lead to
Communism.”
Karl Marx 1867[/quote]

That quote is cool, but suspect…

http://meganmcardle.theatlantic.com/archives/2009/01/faux_marx.php

http://imgs.xkcd.com/comics/duty_calls.png

[Anonymous]

[quote=arraya]Owners of capital will stimulate the working class to buy more
and more expensive goods, houses and technology, pushing them
to take more and more expensive credits, until their debt
becomes unbearable. The unpaid debt will lead to bankruptcy of
the banks, which will have to be nationalized, and the State
will have to take the road which will eventually lead to
Communism.”
Karl Marx 1867[/quote]

That quote is cool, but suspect…

http://meganmcardle.theatlantic.com/archives/2009/01/faux_marx.php

http://imgs.xkcd.com/comics/duty_calls.png

[Author]

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