The Federal Reserve is a big pile of sh!t, and it keeps screwing the US citizens over and over by keeping crappy banks afloat and doing shady underhanded deals with no public disclosure or oversight.
So why am I not surprised that Ben Bernanke supports this idea? He wants to remove that pesky requirement that banks keep, in reserve, a small percent of the money they lend out. In the US that amount is 10%. Meaning that for every $10,000 a bank loans in the US they have to have $1,000 in reserve. This is a good practice because it keeps a bank from loaning more money than it has. They physically have to have at least that small fraction of money in reserve somewhere or else they can't make loans. Once we remove that requirement, banks will just loan as much money as they can get away with figuring that the Fed will bail them out if they go under.
All in all this is just the dumbest thing I think I've heard yet come from the Federal reserve. Why Obama let Bernanke keep running the show I'll never know, oh wait that is right because big politicians are in the pockets of big banking.
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