The strength of Whalen's book is that his monetary history, like Rothbard's, is about people, not policies. While Keynesians talk about unknowable constructs like aggregate demand, Whalen's story turns on the actions of people.
Deposit banking rests on the bank honoring property rights. Loan banking rests on making good loans that will pay off. But when loan banking and deposit banking merged, the temptation to loan out much more than was actually in the bank arose.
Recorded at the Mises Circle at Furman Universityon November 13th, 2010.
Recorded at the Mises Circle at Furman University, November 13th, 2010.
We've only had 294 failures this cycle, but it is a big deal: adjusted to current dollars, the Depression banking crisis was $100 billion, the S&L crisis was $923 billion, and the current crisis is nearly $8 trillion.
Recorded at the Ludwig von Mises Institute; Auburn, Alabama; 8 October 2010.
Recorded at the Ludwig von Mises Institute; Auburn, Alabama; 8 October 2010.
Recorded at the Ludwig von Mises Institute; Auburn, Alabama; 8 October 2010.
