4. Stunningly, Mervyn King imagines the "abolition of fractional reserve banking":
"Eliminating fractional reserve banking explicitly recognises that the pretence that risk-free deposits can be supported by risky assets is alchemy. If there is a need for genuinely safe deposits the only way they can be provided, while ensuring costs and benefits are fully aligned, is to insist such deposits do not co-exist with risky assets."
Now where have I heard that before?
Prohibit as a matter of Federal Law, and enforce it vigorously under pain of immediately dissolution, THE LENDING OF MONEY UNSECURED THAT EXCEEDS THE FIRM'S CAPITAL.
H/t Zerohedge
Source: http://market-ticker.org/akcs-www?singlepost=2239631
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