Why do we need a central bank?; Why not a "Bank of Dave?"Submitted by SteveMT on Wed, 07/25/2012 - 13:46
Why do we need a central bank?
Tim Price on July 25, 2012 - London, England
For the last two weeks here in the UK, TV stations have been running a documentary series called “Bank of Dave“, in which down-to-earth businessman Dave Fishwick attempts to establish his own bank.
The premise sounds plausible: offer depositors 5% interest (as opposed to zero), and lend to credible small businesses that are otherwise ignored by the majors.
But as the irrepressible Dave soon discovers, getting a new banking licence in the UK isn’t easy.
‘Bank of Dave’ has obviously been, albeit inadvertently, deliciously well-timed, arriving on television and computer screens accompanied by increasingly shrill coverage of interest rate rigging in the LIBOR manipulation scandal.