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|User Info||Rebuttal To Mish: FRL; entered at 2009-05-07 17:29:42|
"It's just not kosher for full reservists, because they think that the coal mine title lien collateral is not the same as $10k cash in hand."|
It's not. If you want to assume the risk of it being same-as-cash, then you risk being insolvent at any given time if you're not sensible.
Banks make enough simply on the interest rate arbitrage and fees. That's why they should be a public utility. If they want to be private, then there should be no interest arbitrage granted by being a Fed franchise. They should only make broker fees and all paid interest on loans go directly to depositors.