tag:blogger.com,1999:blog-2761684730989137546.post7461978170766096295..comments2024-03-29T09:32:34.853-04:00Comments on Mike Norman Economics: Simon Johnson — Boards on Their Backsmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2761684730989137546.post-82955274729814126622013-05-24T01:21:03.462-04:002013-05-24T01:21:03.462-04:00“Johnson proposes no answers”. No one has proposed...“Johnson proposes no answers”. No one has proposed any realistic answers apart from advocates of full reserve banking.<br /><br />Under full reserve, depositors who want their bank to lend on or invest their money have to bear any losses from those loans/investments. I.e. depositors in effect become shareholders. That means it’s impossible for a bank to suddenly go bust because the bank does not owe any specific sum of money to anyone. As George Selgin put it “For a balance sheet without debt liabilities, insolvency is ruled out..”<br /><br />While the latter idea is part and parcel of full reserve, one COULD tack the latter idea onto fractional reserve banking. I.e. accepting the latter idea does not mean one has to accept full reserve lock stock and barrel.<br /><br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-9038199979039063042013-05-23T20:30:12.388-04:002013-05-23T20:30:12.388-04:00I believe he is on record for breaking up the TBTF...I believe he is on record for breaking up the TBTF as the only viable solution. Otherwise, they will work around it.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-53369999879231534312013-05-23T17:46:53.507-04:002013-05-23T17:46:53.507-04:00Lots on questions but Johnson proposes no answers....Lots on questions but Johnson proposes no answers.Anonymousnoreply@blogger.com