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September 26, 2012 at 11:20 pm #17147
Thanks Jeff and CSA
I read Rothbard where he rails against fractional reserve banking, but I suppose as you point out he is against the government sanctioning that type of banking.
I think that market pressures might not pressure banks to keep 100pct reserves, but rather pressure banks to offer more interest and greater disclosure about their balance sheets.
The elimination of the fractional reserve banking is a misnomer, It should be the elimination of legal protection for such a racket.