Comment: I don't think there is anything wrong with CDs

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I don't think there is anything wrong with CDs

Certificates of Deposit make clear the nature of the agreement. Savings accounts would be another exception.

However, I disagree with respect to demand deposit type accounts. They should be 100% reserve. Such a policy would greatly mitigate the problem of bank runs.

You point to the history, but the history shows how unstable fractional reserve systems are and further shows that the banking industry never was able to fully mature. The failure of the banking system, in general, to recognize the need for reform never came about - largely due to the desire for creditors to loan what they didn't actually possess which ultimately manifested itself once large, modern economies developed as the business cycle. That failure led to the creation of modern central banks in an attempt to remedy the problems caused by the business cycle. If governments were never allowed to get involved, banks would have continued to fail (leading to panics and depressions) which would have ultimately resulted in the realization that 100% reserve banking with respect to demand deposit accounts is necessary for the banking industry to be free standing.

The history is on my side. If it weren't, central banks would not exist.