Enter the Goldman Sachs White House to the rescue!brianj wrote:I understand these days banks can loan out ten times what's deposited in their accounts. You put $1000 into an account and the bank can loan out $10,000. Some of that money is deposited with banks to create an even greater ratio than 10:1 of loans to deposits.Silver wrote:Nothing has been right since that fateful trip to Jekyll Island. I was being somewhat facetious in asking about timing. The reason for the stock market crash in 1929 is easy to pinpoint in retrospect. The banks loaned and loaned and loaned money. People thought they could borrow forever so borrow they did and bought stocks on margin. Then one day the banks decided it was time to buy stocks on the cheap and they stopped loaning. The rush for the exits was brutal.
When President Bush proclaimed some banks are too big to fail I was offended. No business is too big to fail, and letting a business fail will make room for new businesses to fill the consumer need. But in retrospect I think that protecting those banks was a way of protecting the banking industry, which is too big to fail. When the banking industry collapses, the entire economy will collapse.
Seriously, either Trump is expecting a huge economic war (followed by actual war), or he just loves Goldman Sachs so much he had to "collect them all!"