This itchy need to rescue failure is really bigger than the Fed itself. It extends to all government attempts to protect people from the consequences of their own actions. [Full Article]
Source link: http://archive.mises.org/1733/the-widening-safety-net-for-banks/
The Widening Safety Net for Banks
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Taxpayers are oxen pulling whatever load is piled on their backs. As Chris Mayer writes,
“The Fed—and by extension the US taxpayer—has become the reinsurer of the banking system, willing to bear the risk of catastrophe.”
The Fed’s willing because the taxpayer doesn’t know or care.
No business has used the state to its advantage like the banking industry (though farming tries hard). The safety net is another example of what Oppenheimer meant by “the political means” to wealth.
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