Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Insolvency » On what basis do they make such an argument?

On what basis do they make such an argument?

Some economists argue that deregulating the interest rates that could be paid on deposits combined with deposit insurance led to the insolvency of many depository institutions.

RELATED POSTS:

  1. What are the main powers and responsibilities of the Federal Reserve System? 2) Some economists argue that deregulating the interest rates that could be paid on deposits combined with deposit insurance led...

  2. Most economists believe that the better fiat money serves as a store of value, the more acceptable it is….? Most economists believe that the better fiat money serves as a store of value, the more acceptable it is. What...

  3. what happens when the bank goes bankrupt? to what extent is the bank liable to pay all its deposits in case of insolvency or bankruptcy? i know...

  4. Dr. Coburn rejects flawed argument that Social Security is solvent (Wednesday, March 16 2011) After hearing the remarks from the Democratic Senator from Vermont, Dr. Coburn reveals hard truths...

  5. Do I still have to make credit card payments after I paid my lawyer for my chapter 7 bankruptcy? I filed for bankruptcy about a month ago, and paid him in full last week for chapter 7. Well my...

Written by

Filed under: Insolvency · Tags: , , ,

One Response to "On what basis do they make such an argument?"

  1. Ivan G says:
    Its somewhat of a baseless argument but is hinged on the 100% free enterprise market system. In such a system, governments (the federal reserve and treasury) have no regulatory powers to safegurd the interest of consumers from greedof financial institutions. Without the interest rate modulation, the rate charged on loans could be 40% while the rate paid on savings could be 1%. If this were to happen, supposedly the financials institutions would have more liquidity since they paid out less. Then they would not haveto pay FDIC insurance to ensure solvency of the overall system. It would be a free for all and may the greediest ank win.

Leave a Reply

Connect with Facebook

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player