In the 1920s, bank collapses were a direct result of unregulated practices by banks. Glass-Steagal was passed in 1933 and helped stabilize banking practices. The relaxation of Glass-Steagal and the later complete removal of the firewall between banks and investment houses resulted in a second collap…

Bank collapses were the result of the Federal Reserve expanding the money supply and the government encouraging fractional reserve banking. Bank collapses would be avoided without the business cycle that the Fed creates and with full reserve banking, which is the only way a profitable bank could pos…

why warehouses that lend out their contents suck

Throughout history the business cycle has been observed only during periods of fractional reserve banking and fiat money. This is because the business cycle is created by artificial lowering of interest rates and by the expansion of money supply through central banks. Expansion of the money supply r…

There wasn’t a free market in 1920?

Certainly not. The federal reserve was introduced in 1913. There was also several periods of fiat money usage and debasement of the currency before the federal reserve was even introduced.

If free markets are the answer, how do we reconcile Glass-Steagal?

Economics Economics Questions

HiggsBoson October 6, 2008, 12:12pm 9

You may want to check out this thread from a few days ago:

https://forum.freecapitalists.org/t/article-book-on-origins-of-glass-steagall-act/2994

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If free markets are the answer, how do we reconcile Glass-Steagal?

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