~~Ludwig von Mises
Dow, three year view.
This is the other thing that folks don't understand about the perniciousness of Bernankspan's methods. Commercial and invevestment banks don't rely only on depositors money, but borrow from the money markets whose funds come from credit inflated by the Federal reserve. In other words, they don't use your deposits or my deposits, but rather use money created out of thin air to finance their antics.
While the mechanisms are complicated, in effect, the federal reserve create it, the banks borrow it a low interest rates, and lend it at high interest rates.
In sum, capital is created not through savings with clear individual owners, but through inflation. We all pay in through higher costs of items in the market, but none of us own it. There is no one individual who can call another individual to account when the investment goes south.
The source is Ron Paul’s personal propaganda organ