P.S. (10th March 2019). A point that needs adding to the right hand box is that come a serious bank crisis (e.g. the 2007 one) the state will probably need to use it's powers to rob the population at large (i.e. tax) to rescue banks in trouble. That is very definitely not a free market transaction. E.g. the Fed loaned banks about $175billion for 18 months at a near zero rate of interest at the height of the recent crisis. That quite clearly amounts to robbery of the general population in that many households and firms wouldn't say no to a zero interest loan, or put another way, it amounts to preferential treatment for banks.
You lost me at the first sentence, sir.
ReplyDeleteFDIC was established 1933.
Yes: I was a bit vague with the dates there. You're right: I should have said 1933.
DeleteJanuary 1, 1934, to be precise.
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