« Back to story "The Fed Did Indeed Cause the Housing Bubble"

Story Comments

This page is a permanent archive of the comment below and its replies.
To view this comment in the context of the full discussion for the story, use this link.

All Comments Share Story Report

100%
tadair9199 months ago

This comment is below the standard viewing threshold View It »

jim -- you are forgetting that booms and busts are impossible in a sound money system. the credit you lend is actually the money you have to lend out.

the federal reserve oversees the issuance of money and expanding credit. this fiat money system always lends itself to enormous booms and busts.

watch a documentary called "Money Masters" on google video to better understand fractional-reserve lending.

(comment_max_expanded_depth : 55) (comment depth : 4) (recursion depth : 1) (max_comment_reply_depth : 40) (comment_max_render_depth : 55)
Reply
2 Replies

loading ...
- Neutral
  jimdoze9 months ago
  
  This comment is below the standard viewing threshold View It »
  
  No, Tadair. They are not impossible in a "sound money" economy. Booms and busts have been part of the human condition since long before fractional-reserve lending was created. Old testament Jews practiced a form of 50 -year debt forgiveness, which roughly corresponds to the Kondratieff Wave Cycle.
  
  (comment_max_expanded_depth : 55) (comment depth : 5) (recursion depth : 2) (max_comment_reply_depth : 40) (comment_max_render_depth : 55)
  Reply
  1 Reply
  
  loading ...
  - 100%
    tadair9199 months ago
    
    This comment is below the standard viewing threshold View It »
    
    how is there going to be an expansion of credit if i can only let you borrow what i have?
    
    worse-case scenario, you never pay me back.
    
    sure, i go bust, but nobody else does.
    
    (comment_max_expanded_depth : 55) (comment depth : 6) (recursion depth : 3) (max_comment_reply_depth : 40) (comment_max_render_depth : 55)
    Reply
    0 Replies
    
    loading ...