What do you mean "necessary?" It's a function of demand, they only write the loans for borrowers who want and qualify for them.
It's not pedantry. It's understanding the model of attribution which blames the "fed" for this when it clearly seems like a function of the systemic design of our economy and financial system. Put another way - abolish the fed, and I'm not sure how this would change. And in fact it might get worse as you've removed an oversight and controlling body.
When people talk about ending the fed they don't just mean the actual Federal Reserve. They mean the Federal Reserve along with everything they control such as fractional reserve banking, quantitative easing, etc. Perhaps there is somebody out there who wants to end the fed, but keep fractional reserve banking, but I haven't seen them.
Fixing that will, potentially fix the issue ... Or completely crash everything.
Ahh, “end the fed” doesn’t mean end the fed, OK. Because if you did end the fed, you’d have unregulated banking and maybe a return to wildcat banking which um, would probably not be better for your long term finances.
A quick perusal of Wikipedia’s article on the history of banking would reveal that banks figured out they could lend out more than the amount they had in deposit well before the concept of a central bank came into being, and the central banks’ role has historically been to keep things at least somewhat under control. So again, to put it simply, blaming the fed seems totally misguided here.
I don't think you understand how catchy phrases work. You don't make your phrase 50 words long to accurately convey your thoughts or it will never catch on. The majority of those advocating for ending the fed are Austrian economics supporters who consider the Fed, and the things they are involved with, to be things that need to end and use the phrase end the fed to encompass all of that.
Heh. I think it’s more likely most people saying that don’t really know what it’d entail.
For instance without our current banking and financial system you’d have to pay banks to look after your money, if all they were allowed to do with it was hold on to it. This would have a similar drag on your principal as inflation does on buying power.
It's not pedantry. It's understanding the model of attribution which blames the "fed" for this when it clearly seems like a function of the systemic design of our economy and financial system. Put another way - abolish the fed, and I'm not sure how this would change. And in fact it might get worse as you've removed an oversight and controlling body.