The easy way out

Posted Nov 6, 2012 23:41 UTC (Tue) by Cyberax (✭ supporter ✭, #52523)
In reply to: The easy way out by petrakis
Parent article: Let’s Limit the Effect of Software Patents, Since We Can’t Eliminate Them (Wired)

So there were depressions before the FRS. That's the fact, it's unarguable.

The pre-FRS banking system was on a verge of a catastrophic collapse, so that's why the NBA had been passed. Saying that NBA destroyed a "fairly successful" banking system is kinda sad.

>Depressions are "normal", like storms, they come and go, what makes them "economy killers" is the massive use of leverage which is only possible under the arbitrary fractional reserve system e.g. the great depression and the 2008 banking collapse.
You might notice again, that 2008 was so destructive exactly because it was caused by a "shadow" banking system. It was not dependent on FRS or fiat currency, it could just as well happen with "hard" money (as pre-FRS crises show us).

The only two things that made it big:
1) Sudden austerity and hard-currency belief among elites.
2) The scale of the modern economy.