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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (6783)	1/12/2012 2:38:37 AM
From: grusum	Read Replies (1) \| Respond to of 85487

It is far more productive to try to isolate the actions and economic missteps that caused the problem true. and to try to understand the inevitable depressions that must occur in a fractional reserve banking system, which by its very nature results in a depression. i have to disagree here LJ. without fractional reserve banking, our economy would be less productive. less production would mean fewer jobs and lower pay. loans would be much harder to come by. there would be no interest on bank deposits. instead, you'd have to pay to keep your money in a bank, because your deposit money couldn't be used to fund loans. the problem was that the FDIC allowed the quality of loans, and loan to deposit ratios, to get out of whack after glass-steagall was repealed. end the FDIC and the whole problem goes away.