Good post.
Fixed it.
thanks
“I don’t care, nor does AE care if 100% of deposits are lent out, as long as three conditions are met: 1) Money is not created into existence by the loan 2) Money is not lent out for terms longer than the bank has access to the money 3) Depositors who lend money to the banks for interest are the ones who pay the price should there be a default on the loans.”
Therefore, the problem is not fractional reserve banking but the current system that allows banks to securitize loans then sell them to the Fed for money that the Fed prints. There are other more complex transactions that amount to the same thing which have resulted in the excessive amount of long term credit that can’t be paid off. So instead it is rolled (in a so-called boom), there is some printing (to try to keep the boom going), then waves of default which get larger proportionate to the prior excesses.
You stay classy, Austrian economists.
Tamney appears on the J. Batchelor show occasionally. Very simplistic thinker.
Mises & Hayek Bump!