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National planning Cyprus-style solution for New Zealand

I was curious of what others thought of the proposal in New Zealand for the Open Bank Resolution.

From a free-market perspective this solution to banking failure is much more market based than the print to save solutions and it doesn't give the false impression of safety that deposit guarantees give. It is however a radical idea for most people to comprehend.

My only apprehension would be the point made in the article about average depositors not being able to judge the soundness of their bank. A free market solution would be to have independent organizations to analyze bank soundness and as a customer you'd have to keep up to date on that.

I'm convinced that in some way this will make New Zealand banks more stable, as they won't want to scare away customers. But what does everyone else think about this?

http://www.scoop.co.nz/stories/PA1303/S00306/national-planni...



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Don't we already have that?

A free market solution would be to have independent organizations to analyze bank soundness

A lot of folks seem to think these politicians are "having trouble" coming up with a solution. THEY DON'T WANT a solution.

Here's a solution which will never be implemented by corporate quasi-governments: Take back the power to issue your own currency. Then you can print all you need when the economy is bad... print less when the economy is good: INTEREST FREE.

That's not going to happen though so here's a proposed "people" solution:

http://www.bart-mart.com/how.mp3
http://www.bart-mart.com/vincent