I always thought fractional reserve banking (FRB) was fraudulent, but this article may have changed my mind. I guess it comes down to whether the customers are aware of the practice and are depositing their funds with the knowledge that the bank practices FRB.
So I imagine, in a free market, both full reserve banking and FRB would pop up and the free market would sort out which type of bank is more successful. It could be that both types continue to exist. Or it could be that the dangers of bank runs eliminate FRB from the market.
Also, what makes this article interesting to me is that I actually found something to disagree on with Walter Block. Dr. Block, if I want to buy a square circle, who are you to stop me?
"It may be a hundred years before a computer beats humans at Go - maybe even longer. If a reasonably intelligent person learned to play Go, in a few months he could beat all existing computer programs." - Piet Hut
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