Don't talk to me about the moral hazard of bailing out the banking system from temporary short term liquidity crises, until you can explain how to prevent the panics and depressions of the 1800's when we were on a gold standard.
Is your plan to shut down all banking and lending and use of currency? Go back to the barter economies of 3000 years ago? Because I have a news flash for you. Money creation occurs with any lending. Any lending at all creates money. If you have 5 gold pieces and you loan that to your brother, you now have a receivable worth 5 gold pieces, and your brother has 5 gold pieces. You just increased assets from 5 to 10. That's money creation and it didn't take the Federal Reserve to make it happen.
I’ll talk to whom I want. Get your own site and you can ban me.
Anyway.
Why should speculative panics be ‘saved’? You use the word save, like a kid drowning in a pond. I say they are cleared, exposed, like a festering wound to daylight.
At least back then they were saved by the likes of Morgan. Private citizens not engaged in speculative behavior were not taxed, nor their future generations indebted to bail out speculators.
( TARP. It’s for the children )
Three words. Fractional. Reserve. Banking.
Paper, gold, rocks, whatever you might choose as money, will always be affected by the fraud that allows banks to lend out the money they promise to provide you upon demand.
A "bank run" is nothing more and nothing less than the fraud of fractional reserve banking being exposed. It is inevitable, as we are about to find out, not even the most powerful central bank in the world can hide the fraud forever.
With an honest banking system, bank runs cannot occur. Because the money you deposited is really there when you wish to access it. There would only be a panic in the event of fraud or other criminal activity.