moonbat1775

Are Big Banks Too Big to Fail?

Some people seem so wedded to fractional reserve banking that they cannot conceive of an alternative. An alternative that is honest, flexible, and stable is competing currencies with 100% reserves. The reserves could be any commodity, good, or service. The market place would quickly pick a few favorite currencies and reserves. All the government would have to do is enforce the usual laws against fraud and insolvency.

If we do not adopt economic liberty with respect to money, then our choices are a heavily regulated stagnant banking system or a lightly regulated unstable banking system or some so-called "happy medium".