tag:blogger.com,1999:blog-3758330678390419129.post3608044173627946734..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: George Selgin's Balls-Out, Over-the-Top Ferocious Attack on Rothbardian Banking TheoryRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger27125tag:blogger.com,1999:blog-3758330678390419129.post-52448789172824154112012-07-17T23:47:32.410-04:002012-07-17T23:47:32.410-04:00I doubt Selgin has anything to be jealous about an...I doubt Selgin has anything to be jealous about any of those guys. Wenzel interview Johnson a while back and made it a point to show Johnson's lack of knowledge of the ABCT, when Johnson asked Wenzel about the pre-fed booms and bust Wenzel said he was barley going to start to read about those and quickly went back to grilling him. Now how can someone who post aboutthe fed so much not have Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-51122258104459957612012-07-17T01:30:50.216-04:002012-07-17T01:30:50.216-04:00Does Selgin come across as incredibly bitter and a...Does Selgin come across as incredibly bitter and angry at how certain Austrians are far more influential among the public and famous than him, despite decades of his trying? Wenzel would be one with this blog, so would Tom Woods, Salerno, Block, Dilorenzo, etc? That might explain how bitter and hyper-sensitive he is over the mildest form of criticism. <br /><br />Of course, what would a cult Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-39827939579180793832012-07-15T16:21:38.480-04:002012-07-15T16:21:38.480-04:00>>>>Salermo implying that Selgin is ke...>>>>Salermo implying that Selgin is keynesian is ridiculous and it makes him look bad.<<<<<br /><br />Good thing Selgin disagreed with the Keynesians on things like QE1 or else there might be some truth to what Salerno says, eh?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-84153163944355613282012-07-15T16:20:23.300-04:002012-07-15T16:20:23.300-04:00Selgin has emotional temper tantrums like a stereo...Selgin has emotional temper tantrums like a stereotypical ex-wife whenever someone disagrees with him. His insults and tirades that have nothing to do with the issues are also just like a bitter ex wife. I do admit to enjoying seeing people winding him up and his meltdowns though.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-41388103209725102992012-07-14T19:52:14.493-04:002012-07-14T19:52:14.493-04:00Not exactly tough to believe that Selgin acted def...Not exactly tough to believe that Selgin acted defenisively and arrogantly with the way he conducts himself online over and over again.<br /><br />Where is Major Freedom, anyway? He really let Selgin have it a few months ago when Selgin was a topic here.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-42579659861717313352012-07-14T17:47:38.150-04:002012-07-14T17:47:38.150-04:00In a free market, no one would be issued a special...In a free market, no one would be issued a special privilege to issue notes referring to non-existing commodities. Everyone (you, me, a firm, a "bank") would be free to issue whatever notes/claims they want. The market would price each note accordingly. If said notes are issued (exchanged) under false pretenses, that would amount to fraud. <br /><br />Savers of capital can easily meet z1235noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-62789218851996063672012-07-14T12:03:32.103-04:002012-07-14T12:03:32.103-04:00"Selgin argues that as long as we have a cent..."Selgin argues that as long as we have a central bank QE1 was the response the central bank should have to the crisis. In his opinion QE1 was a bit too much though (or at least this was his position around 2010)."<br /><br /><br />So as long as massive intervention is taking place, the answer to any problem is far more intervention? Does that concept also apply with the welfare state, Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-54047876191565712962012-07-14T11:52:56.789-04:002012-07-14T11:52:56.789-04:00Selgin, so you supported QE1?!?!?!? Really? I do...Selgin, so you supported QE1?!?!?!? Really? I don't see how anyone can call themselves a free market economist and hold that view. I expect Krugman and Bernake and the other Keynesians to do that, but not someone who laughs at claims that he has keynesian views.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-50648288485677915312012-07-14T06:33:28.400-04:002012-07-14T06:33:28.400-04:00The biggest problem FRB banks with low reserve rat...The biggest problem FRB banks with low reserve ratios face is that they have competing claims to the same stored commodity. Now this can be alleviated if the depositors accept that their savings can only be withdrawn after a period of time, during which the bank may pay a satisfactory rate of interest. On the other hand, if no such arrangement prevails and the bank messes up maturity matching andInquisitornoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-58843087530829174732012-07-13T22:56:03.693-04:002012-07-13T22:56:03.693-04:00Dr. Salerno-
I watched the Congressional Hearing ...Dr. Salerno- <br />I watched the Congressional Hearing to which you link, and came away from it uncertain whether, in a market-based banking system, full reserve banking is an empirical prediction or a normative goal. You seemed at points to be saying "this is what would happen" and other times to be saying "this is what would happen and it is a good thing, too!"<br /><br />SoJimM47https://www.blogger.com/profile/07557198601361050165noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-19940223660247499702012-07-13T20:14:26.720-04:002012-07-13T20:14:26.720-04:00yes, in all frankness I think Selgin is acting in ...yes, in all frankness I think Selgin is acting in a rather histrionic fashion about what is really a matter of prediction and consumer preference.Inquisitornoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-79167204989998226962012-07-13T20:13:09.061-04:002012-07-13T20:13:09.061-04:00"Ouch. I don't blame you for wanting to p..."Ouch. I don't blame you for wanting to post Anonymously."<br /><br />Unless the conditions of the deposit are stipulated, there is too little information in the hypothetical to draw conclusions. If the bank is not contractually entitled to withdraw a penny from your savings account, then yes it is fraudulently lending the money out. If it does so on the understanding that you save Inquisitornoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-69892809946701008292012-07-13T16:24:43.926-04:002012-07-13T16:24:43.926-04:00Rothbard was against fractional reserve banking be...Rothbard was against fractional reserve banking because he believed it was fraud. He did make an argument it would die out if government got out of the way (other than its allow of fractional reserve banking to continue), but in his view it was not a part of a free market.Bharathttp://theinterventionistparadox.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-22729705842707075942012-07-13T14:15:01.989-04:002012-07-13T14:15:01.989-04:00I must correct myself. Grinder was forced out som...I must correct myself. Grinder was forced out sometime in '92, so I may have done my last IHS seminar that summer. Whether the image of me responding to a question about fractional reserves as anonymous suggests is a plausible one I leave to others to determine. (For what its worth, I recall always getting very nice student evaluations, which were also anonymous. Perhaps there was one George Selginnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-16293512472227981812012-07-13T13:19:29.536-04:002012-07-13T13:19:29.536-04:00An interesting recollection, and especially so in ...An interesting recollection, and especially so in light of the fact that I quit lecturing for IHS, in protest, when Walter Grinder and Leonard Liggio were forced out, that is, several years before the seminar of which you speak, and did not take part in its seminars again until quite recently. But of course that's not to suggest that readers of this forum should hesitate to believe the otherGeorge Selginnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-14867500057744998602012-07-13T11:45:58.858-04:002012-07-13T11:45:58.858-04:00I do not think most people historically gave much ...I do not think most people historically gave much thought to the significant difference between 100% reserve notes and fractional reserve notes. I was dealing the ubiquitous alleged fraud issue. I was saying that there would be no fraud if all the parties understood the true nature of those notes, but ONLY IF they so understood. I tend to think that payees with a full understanding of what they Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-30094378258458750812012-07-13T11:27:57.516-04:002012-07-13T11:27:57.516-04:00http://www.freebanking.org/2012/07/13/more-dumb-an...http://www.freebanking.org/2012/07/13/more-dumb-anti-fractional-reserve-stuff/<br /><br />Ouch. I don't blame you for wanting to post Anonymously.Phillip Nghttp://facebook.com/phillipngnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-76634523956892344192012-07-13T10:39:00.587-04:002012-07-13T10:39:00.587-04:00I saw Selgin at an Institute for Humane Studies su...I saw Selgin at an Institute for Humane Studies summer program in 1992 and he acted the same way then. At that point, I think he was working with Larry White and was championing "free banking." When asked about the problems raised by Salerno - albeit in a more rudimentary form - Selgin got angry and dismissive, unbuttoned another button on his shirt and hit on a young twentysomething Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-63378273451597739542012-07-13T10:27:30.338-04:002012-07-13T10:27:30.338-04:00Bob Rodis, thats indeed the opinion of the free ma...Bob Rodis, thats indeed the opinion of the free market 100% reserve supporters. The problem is history shows all the examples where there has been a monetary free market people have supported fractional reserve banking. So the situation develops completely opposite of what you are suggesting.<br /><br />In fact, as far as I know, there has not been even one example of 100% reserve bank in a Hugonoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-90370866799983828742012-07-13T10:20:53.271-04:002012-07-13T10:20:53.271-04:00I think the desirability and eventual fate of frac...I think the desirability and eventual fate of fractional reserve banks is settled by the physical issues of discounted exclusive title.<br /><br />There is no way for a fractional reserve bank to fail to impair the title to the money they fractionally reserve. <br /><br />While the fractional reserve bank will likely outperform on earnings for a time, just as would the above hypothetical 'Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-43439626854659573992012-07-13T09:43:58.194-04:002012-07-13T09:43:58.194-04:00Hugo,
"Fractional reserve banks tell you wan...Hugo,<br /><br />"Fractional reserve banks tell you want they are doing with the money and you decided if you want to participate or not."<br /><br />Really?<br /><br />Do you have money in the bank?<br /><br />Did you receive any notice that you could not withdraw your money because it is currently loaned out?<br /><br />Really? Outside of a CD or other time deposit, you might be the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-19314673616501059922012-07-13T09:14:51.207-04:002012-07-13T09:14:51.207-04:00I see that problem with "free banking" f...I see that problem with "free banking" fractional reserve notes being finding informed payees who will accept the notes. A payee would have to fully understand that such a note is not at all the same as a 100% reserve note.<br /><br />In Detroit which is right on the Canadian border, most stores will not accept Canadian money even though the exchange rate today is over 98%. Unless Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-49137871142765399572012-07-13T07:49:29.934-04:002012-07-13T07:49:29.934-04:00Salermo implying that Selgin is keynesian is ridic...Salermo implying that Selgin is keynesian is ridiculous and it makes him look bad. I think Selgin is not taking an intelligent approach here (using too many disrespectful words) but sometimes with this responses I kind of understand why.<br /><br />Just to clear a couple misunderstanding a couple of comments above me have made:<br /><br />1:<br /><br />>So the bank doesn't tell me that $Hugonoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-53821389172522322162012-07-13T01:31:30.034-04:002012-07-13T01:31:30.034-04:00I'm afraid I don't see Salerno's point...I'm afraid I don't see Salerno's point. Selgin advocates monetary freedom in that he doesn't think that the government should prohibit fractional reserve lending. Isn't this Rothbard's position? Didn't Rothbard argue that in a truly competitive setting where the government stayed out of it altogether, that fractional reserve lending would die out? The only difference Irobbnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-21709558704583017072012-07-12T23:02:40.469-04:002012-07-12T23:02:40.469-04:00Selgin was a proponent of QE1? Wow. He pretty mu...Selgin was a proponent of QE1? Wow. He pretty much loses any ounce of credibility as a free market guy by that alone. Keynesian is his name, no matter what he calls. Salerno destroyed Selgin with this article!Anonymousnoreply@blogger.com