Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Yes, because the "Centralized Bank" in 1929 caused the bank runs.

Oh wait, centralized banking didn't exist back then? Fractional Reserve Systems didn't happen back then? And yet you have a decade of the greatest bank-runs of US History?

And ever since the fractional reserve system was invented, there hasn't been a national-scale bank run in the US for nearly 100 years?



You might want to check your dates. From wikipedia[1]:

"The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907."

[1] http://en.wikipedia.org/wiki/Federal_Reserve_System


The Federal Reserve came into existence in 1913, and fractional reserve banking was absolutely being practiced in 1929.

If you're going to act all exasperated about something, at least get your facts right.


Fractional reserve banking dates back to at least the 1600s, practiced by goldsmiths in a time when currencies where privately issued.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: