Quote Originally Posted by Goldenboy219 View Post
Nope! I said that saving increases during recessions as income decreases. This is brought on due to fear and is not desirable. A recession is not... i repeat is not relieved because a necessary amount of saving is achieved.

It relates to human behavior and psychology.
So people won't start spending money again when they feel secure again, when they've saved enough money? Really?

Maybe, you have to expand your quote a bit.
FDIC creates a moral hazard so that banks will be looser with the saved money than they should be.

No need to put words in my mouth.... The FDIC goes bankrupt and the majority of peoples savings will be depleted.
Unless they put their money in banks with a high reserve ratio. Those people will be fine, and people would start putting their money there.

A bank with a relatively high reserve ratio was needed in dark ages. Such an institution is unprofitable and unnecessary. They do not meet the needs in the era of fiat.
Lol, the era of fiat is what brought about these massive bubbles. High reserve ratio banks are the only banks that can survive the storm of recessions like this. They would be the only ones around after a while people people would only depend on them.

What demands of yours are not being met? The people demand higher paying jobs! This economy does suck
This economy is not a free market economy. What a terrible example! This economy does suck.