Here is the endorsement by Governor Deval Patrick of Elizabeth Warren for U.S. Senator in 2012.
I guess The Daily Ticker on Yahoo! is the ultimate exemplar of fair and balanced with this interview Blame the Fed for JPMorgan’s Big Loss: Mike Pento.
Whereas Faux Noise is unbalanced because they only have idiots as pundits, and The Real News is unbalanced because they only have knowledgeable people as pundits, The Daily Ticker is balanced by having a preponderance of knowledgeable people with a few idiots thrown into the mix.
I watched 1 minute and 22 seconds of this 4 minute interview before coming to the following conclusion.
Pento in this interview is an idiot. We had regulatory rules during the crises he names, but Bush appointed heads of these agencies so that they would not enforce the rules.
Nobody who is brought on as a pundit for a Business channel should be touting the gold standard.
I’ll take my financial advice from someone who looks at facts, not from someone who bases his advice on faith in the all powerful intelligent designer.
100% reserve banking indeed. You can try to enforce that on the official banks, but try enforcing that on the shadow banking system. Halt naked short selling if you can before you contemplate other rules for the shadow banking system. If you could figure out how to stop naked short selling, then I could at least imagine that you could impose 100% reserve banking on the shadow banking system. It would still be a horrible idea, but you’d have some credibility in saying you could actually accomplish your horrible idea.
By the way, 100% reserve banking is a bad idea because it would shrink our economy by a factor of 10 or more in an instant.
The way that banks make money is to lend the money that is not required to be held in reserve. If you cut off that source of income (which is also providing a service to the community), the banks will be forced to come up with “creative” solutions. They could start charging you for the service of holding onto your money in safety. Or they could attempt to cheat on the rules. How often is the Fed going to check every bank to make sure they actually have their 100% reserves? I can envision a whole new industry of shifting reserves around to banks just ahead of the bank examiners.