Why do we need private banks at all? | 133 comments (133 topical, editorial, 0 hidden)

Re: Why do we need private banks at all? (none / 0)

If you were correct about what banks do with deposits, it would contradict Migeru's argument.

But in fact, it's not true
http://www.kc.frb.org/publicat/fip/prs01-4.pdf

by rootless2 on Wed Feb 29th, 2012 at 08:33:27 AM EST
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Re: Why do we need private banks at all? (none / 0)

No, I'm making the same argument Mig is.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Feb 29th, 2012 at 08:53:39 AM EST
[ Parent ]

Re: Why do we need private banks at all? (none / 0)

Nice try.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Carrie (migeru at eurotrib dot com) on Wed Feb 29th, 2012 at 09:20:09 AM EST
[ Parent ]

Re: Why do we need private banks at all? (none / 0)

Growth in traditional deposit funding sources
has stagnated at many banks in recent years and has
largely failed to keep up with the growth in bank
assets. In response to these trends, banks have had
to supplement traditional funding sources with a
variety of new, but potentially less stable and more
expensive, funding instruments

from the fed article i cited.
that was in 2001 - before the current crisis. But the point is clear, I hope.

by rootless2 on Wed Feb 29th, 2012 at 10:36:53 AM EST
[ Parent ]

Why do we need private banks at all? | 133 comments (133 topical, 0 editorial, 0 hidden)