Leo123
Diamond Member
- Aug 26, 2017
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The Federal Reserve System did not ensure the economy in fact it caused it to fail. They increased the money supply by 67% between 1921 and 1929. This caused a stock market bubble which caused a crash.The Fed doesn't control the economy.
During a panic, everyone hoards cash, everyone is afraid to lend.
Otherwise good businesses can fail without access to loans.
Up until 1907, Rockefeller acted as lender of last resort.
During panics he had enough liquidity to support otherwise healthy banks
which helped reduce the severity of panics and depressions.