tag:blogger.com,1999:blog-3758330678390419129.post2891206250823090573..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: I'm for Free Markets, but... (Tyler Cowen Edition)Robert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3758330678390419129.post-18363580001202064112010-12-21T15:35:34.755-05:002010-12-21T15:35:34.755-05:00Unlike our current system, higher leverage would m...Unlike our current system, higher leverage would mean higher costs, either in interest payments, deposit insurance premiums (assuming such insurance would be available in a free market) or both. The reality is that free markets produce negative feedback loops that regulate more effectively than arbitrarily-controlled markets.Brian J. Gladishhttps://www.blogger.com/profile/08060107207216764612noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-11433612148862279852010-12-21T14:19:09.915-05:002010-12-21T14:19:09.915-05:00Wenzel,
Furthermore, in a free market, people ear...Wenzel,<br /><br />Furthermore, in a free market, people earning interest on their money at banks would likely clearly understand they were engaged in a speculative loan-making enterprise and that there money was not available as a 100% demand deposit. Again, this would negate the "need" for any centrally mandated leverage ratios.Taylor Conanthttps://www.blogger.com/profile/18270678440957992085noreply@blogger.com