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View Diary: Naked Capitalism: "...Democrat Bank Stooges Launch Bills to Permit Bailouts, Deregulate Derivatives" (109 comments)

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  •  Seriously, you don't know shit. (3+ / 0-)
    Recommended by:
    kovie, johnny wurster, kefauver

    There was a free banking era in the US - 1837-1862 when private bankers did control the money supply.

    During the free banking era, the banks were short-lived compared to today's commercial banks, with an average lifespan of five years. About half of the banks failed, and about a third of which went out of business because they could not redeem their notes.[2] (See also "Wildcat banking".)

    During the free banking era, some local banks took over the functions of a central bank. In New York, the New York Safety Fund provided deposit insurance for member banks. In Boston, the Suffolk Bank guaranteed that bank notes would trade at near par value, and acted as a private bank note clearinghouse.

    Since progressives stepped in the banking system has been under federal control.

    "The way to see by faith is to shut the eye of reason." - Thomas Paine

    by shrike on Wed Mar 20, 2013 at 08:03:34 PM PDT

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    •  yeah, there were "panics" every ten years or so (0+ / 0-)

      this "free banking" system that you speak of was unregulated in the extreme.

      And so the solution?

      Privatize the money supply? So the private banking cartels can skim off the top of the nation's money?

      Pregressive? Really?

      You're the one that doesn't understand shit.

      The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

      by ozsea1 on Thu Mar 21, 2013 at 08:17:51 AM PDT

      [ Parent ]

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