On Mon, 18 Mar 2002 [EMAIL PROTECTED] wrote: >http://econwpa.wustl.edu/eprints/mac/papers/0203/0203005.abs > >would be interested in any feedback. due to the contents, am also >attempting to maximize its exposure, please help me spread the word.
Somehow I can't escape the feeling that you're taking the parasite analogy a bit too seriously. Especially in the context of fractional-reserve banking -- the problems I see with that system boil down to: -government licencing of banking operations, limiting competition and efficiency -the shedding of risks to central banks or inadequate knowledge of the risks on behalf of the depositors, inviting malinvestment -inadequate propagation of information on actual risks when loans are reinvested as deposits, again a cause for malinvestment If depositors are fully aware of the risks they're taking, and actually have to carry them, I see no reason why deposits couldn't be seen as a straight-forward extension of other means of investment. In such conditions, I'd say fractional-reserve free banking is *quite* possible, and certainly shouldn't be equated with parasitism. Rather, it seems more like an eminently usable hybrid of private investment and insurance. Sampo Syreeni, aka decoy - mailto:[EMAIL PROTECTED], tel:+358-50-5756111 student/math+cs/helsinki university, http://www.iki.fi/~decoy/front openpgp: 050985C2/025E D175 ABE5 027C 9494 EEB0 E090 8BA9 0509 85C2
