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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: rich evans who wrote (97158)4/30/2009 1:49:06 PM
From: mishedlo12 Recommendations  Read Replies (2) of 116555
 
Greenspan authorized sweeps in 1994.
Sweeps allow Demand Deposits Accounts (checking accounts) to be systematically "swept" from checking accounts into savings accounts unbeknown to the checking account holder.

Savings accounts have zero reserves.

So... In actual practice there is almost no money backing up checking accounts, none (beyond what banks THINK they need historically). You can thank Greenspan for this.

This is not "Laissez Faire" economics or Libertarianism. This is blatant fraud, something that Elroy and others blaming Libertarianism need to understand.

Such a construct would never flourish in a free market. It takes a regulator like Greenspan to allow it.

Mish
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