Originally posted by no1marauder

The people of the US would have been better served by a creation of a government entity that directly loaned to consumers and (esp.) businesses rather than tossing $700+ billion to incompetent fat cats and their bloated corporations and banks.[/b]

Isn't that basically what the Fed is? I know the Fed isn't specifically government but private (sort of).

Instead of bringing back Glass Steagall, we got Frank/Dodd a conglomeration of text that almost nobody understands, and which will lead to future banking failures.

Originally posted by normbenign
Isn't that basically what the Fed is? I know the Fed isn't specifically government but private (sort of).

Instead of bringing back Glass Steagall, we got Frank/Dodd a conglomeration of text that almost nobody understands, and which will lead to future banking failures.

No it isn't. Federal Reserve Banks loan to other banks but not consumers and other businesses.

I suppose Congress could have required them to by legislation; perhaps that would have been more efficient than creating a new agency.

Originally posted by no1marauder
No it isn't. Federal Reserve Banks loan to other banks but not consumers and other businesses.

I suppose Congress could have required them to by legislation; perhaps that would have been more efficient than creating a new agency.

Yeh, I understand what the Fed is, and what it does. But it enables banks to loan far more money than they actually have in their vaults. That overextension of credit, and the attendant excessive borrowing and reliance on borrowing eventually leads to pull backs, recessions, and depressions.

Originally posted by normbenign
Yeh, I understand what the Fed is, and what it does. But it enables banks to loan far more money than they actually have in their vaults. That overextension of credit, and the attendant excessive borrowing and reliance on borrowing eventually leads to pull backs, recessions, and depressions.

We discussed your primitive ideas opposing fractional reserve banking before. There's little reason to go down that road again.

Originally posted by no1marauder
We discussed your primitive ideas opposing fractional reserve banking before. There's little reason to go down that road again.

Not unless you have something to add.