Jul 12 2008
Banks are in dire straits
Starting in July …, the government and the [banks] began to see what dire straits they were in; the enormous inflation of money and credit…, had put the [banks] in danger of going under and illegally failing to maintain… payments. Over the next year, the [banks] began a series of enormous contractions, forced curtailment of loans, contractions of credit… The contraction of money and credit swiftly bought the United States [a] widespread economic and financial depression. The… Nationwide “boom-bust” cycle had arrived…
The result of this contraction was a rash of defaults, bankruptcies of business and manufacturers, and a liquidation of unsound investments during the boom.
Does this sound famiiliar, Does this sound like today
Well, it wasn’t this refers to 1818 - Not 2007/8!
We have been here before, and it was much worse in 1818, than it is now!
source: [Rothbard - The Mystery of Banking, pp 204. He’s talking about 1818 not 2007.] via Dave Ramsey show
Free internet book on Money and Banking by Rothard
http://www.mises.org/Books/mysteryofbanking.pdf
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