ccnyman
Vissi d’amore
- Joined
- Jan 6, 2006
- Posts
- 12,014
LovingTongue said:Really, that wasn't what did the banks in. It was their general mismanagement.
We haven't had a crisis of that magnitude since, because of banking regulations and the FDIC.
Nothing like knowing your money is safe and guaranteed, to stabilize an economy.
Nothing like not knowing your money is safe, to bring it to its knees.
I present evidence, can give you the source as to why the pumping of money into the economy by the Fed caused a speculative expansion which they then tried to correct causing a liquidity crisis and a contraction. You give a blanket statement without offering proof.
I can just as easily say the Fed learned its lesson and has not done anything of that magnitude again. There still have been smaller crisis, but none that large. What makes people think their money is safe are not the regulations, but the fact that the government is behaving responsibly.