Bank America Analysts. Incompetents, Or Outright Liars? I'm Guessing Both.

   (Commentary posted by Roger Erickson)

"The PBOC is [acting] through selective cuts in the reserve-requirement - the portion of of deposits that banks need to keep in reserve, rather than lending out ... the Bank of America analysts said in a report"

Seriously. They said that with a poker face that was either straight, or just ignorant, or indicative of racketeering.

At what point do we just throw in the turban, give up on this electorate, and try Islamic banking? It can't possibly be as corrupt AND dumb, simultaneously ... can it?*

If we're going to practice kabuki banking, why stop there? Say, here's an idea. How about we just require banks to declare fiat reserves, so that they won't run out of the public fiat that they're tasked with reporting to the Federal Reserve? If they can't run out of our fiat to "loan" out, that would also remove the need to bother with fiat credit ratings, and make Liar's Loans fully fiat as well? Fraudulent form over adaptive function would be complete!

PT Barnum would likely approve. It'd be worth the price of admission just to watch that bill sail through Congress. :( Heck, even Alice in Wonderland would probably approve. Plus, "capitalists" could get the popcorn concession for the comedy show. In capitalist theory, we'd all win by most losing.


* It once seemed like a good idea to have all students learn the fundamentals of finance by age 10, but NOT if BOA & the American Banking Association are allowed to control the indoctrination, er ... "curriculum" - or whatever they call their obsolete, gold-std program. If we followed their lead, the DoD would also return to using flintlock muskets and a sailboat navy, and "policy agility" would disappear from our vocabulary, not just our  reality.