RE: YEP
You mean allowing major banks to fail resulting in mass bank runs and deposits of ordinary citizens to be held WITHOUT government intervening is a good thing ?
People put money in banks, and accept a lower return, because of the government guarentee. Without the governmednt guarentee, the banks would have to pay a higher interest rate, and depositors would have to assess the risks. As it is, there is no risk to the depositors, only to the taxpayers, which may or may not be the same people.
This situation gives the bankers a license to steal.
“You mean allowing major banks to fail resulting in mass bank runs and deposits of ordinary citizens to be held WITHOUT government intervening is a good thing ?”
In 1920-21, there was a sharper, and steeper recession than the one in 1929. It was also much shorter, less than a year, because in 1920-21, the government did nothing, while from 1929 through the 1930’s, the government did something.