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<blockquote data-quote="Easy_C" data-source="post: 956023" data-attributes="member: 8290">Not very long historically.&nbsp; American monetary systems have ALWAYS had a large number of bank failures, because banks would aggressively lend out credit and then whenever there was a run on the bank they were unable to meet their cash obligations and folded.&nbsp; The second national bank was created to address that.One major problem this time is that we no longer have a real &quot;reserve&quot;.&nbsp; The entire point of Federal Reserve as originally created was that it would be funded by bankers as a &quot;reserve&quot; against unexpected losses.&nbsp; Basically imagine if you local neighborhood association all donated some funds together to create an &quot;emergency fund&quot; to repair anyone's house that got burnt down and you've got the Federal Reserve.....catch is that no longer exists because the government began mandating their involvement in government debt, and they now exist to influence and manipulate the economy for political purposes.&nbsp; What most people don't know is that the bank are being told behind the scenes that there will be no bailout this time: the money simply doesn't exist.&nbsp; We're in a much riskier situation now and I would imagine that is the real reason why most banks are shedding huge numbers of traders.That's the thing: those trends are accelerating exponentially in America.</blockquote>

[QUOTE="Easy_C, post: 956023, member: 8290"] Not very long historically. American monetary systems have ALWAYS had a large number of bank failures, because banks would aggressively lend out credit and then whenever there was a run on the bank they were unable to meet their cash obligations and folded. The second national bank was created to address that. One major problem this time is that we no longer have a real "reserve". The entire point of Federal Reserve as originally created was that it would be funded by bankers as a "reserve" against unexpected losses. Basically imagine if you local neighborhood association all donated some funds together to create an "emergency fund" to repair anyone's house that got burnt down and you've got the Federal Reserve.....catch is that no longer exists because the government began mandating their involvement in government debt, and they now exist to influence and manipulate the economy for political purposes. What most people don't know is that the bank are being told behind the scenes that there will be no bailout this time: the money simply doesn't exist. We're in a much riskier situation now and I would imagine that is the real reason why most banks are shedding huge numbers of traders. That's the thing: those trends are accelerating exponentially in America. [/QUOTE]

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