Replies to post #1749 on Ron and Rand Paul - The rEVOLution Continues

[shermann7]

First time on this one for me...

"For Bagehot, “the natural system” was the one “which would have sprung up if Government had let banking alone.” There would have been “many banks of equal or not altogether unequal size.” He described this as “the many reserve system,” in which each bank held reserves for itself, which he believed would have meant a stronger banking system. In modern parlance, Bagehot’s celebrated “lender of last resort” is a second-best solution—second to a world of competitive banks and no central bank."

A really great point...It would have prevented the big 6 from getting so big!!!

Shermann