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Then you aren't shooting the whole private banking sector in the back of the head and burying it out back.

Obviously we could shoot all the TBTF banks in the back of the head, and so long as we did it by taking them into receivership long enough for people to shift their accounts to small community banks and credit unions, there wouldn't be any massive calamity in the short term, and in the long term we'd be better off.

But shooting the entire private banking sector in the back of the head and having to recreate the entire sector from scratch ~ that seems likely to deepen the current depression.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Fri Nov 4th, 2011 at 01:10:26 PM EST
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True, I'm not shooting the whole private banking sector. Only as much as is required. The point I was trying to make is that there is no magical upper limit to how large a share of the function of the private banking system the state can take over if it needs and wants to. How much you want to take over depends on how corrupt the different sorts of banking are in your country. And how corrupt the civil service is, obviously.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Nov 5th, 2011 at 06:28:13 AM EST
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