Author: Harry Herget

United States

United States The United States adopted a silver standard based on the “Spanish milled dollar” in 1785. This was codified in the 1792 Mint and Coinage Act, and by the Federal Government‘s use of the “Bank of the United States” to hold its reserves, as well as establishing a fixed ratio of gold to the US dollar. This was, in effect, a derivative silver standard, since the bank was not required to keep silver to back all of its currency. This began a long series of attempts for America to create a bimetallic standard for the US Dollar, which...

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Repeal the Community Reinvestment Act – CRA

Repeal the Community Reinvestment Act – CRA   How do I detest thee?  Let me count the ways. Since it’s enactment in 1977, CRA effectively socialized credit risks while privatizing credit losses. CRA established a double standard for assessing and meeting credit demand by (a) punishing banks for making bad loans to traditionally credit-worthy borrowers and (b) rewarding banks with a “Satisfactory” or “Outstanding” rating for making bad loans to high risk borrowers. CRA encourages community groups with known social agendas to complain to regulators when such groups, using whatever criteria they choose, feel banks are not meeting their...

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Repeal CRA – The Community Reinvestment Act

hherget@aol.com 132 words     Repeal CRA – The Community Reinvestment Act   In practice, CRA functions as the Congressional Reparations Act. It became law in 1977, and its purpose was to use our banking system as a credit source for making sub-prime loans to high risk borrowers; in effect, it’s our credit markets version of Affirmative Action. CRA legislated sub-prime lending by socializing loan risks and privatizing loan losses. CRA established a double standard for assessing and meeting credit demand: (1) Traditional standards based on quality and (2) new, CRA standards that reward banks for making sub-prime loans...

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Where was the Fed on 9/16/08?

Where was the Fed on 9/16/08?   Radical Islamists attack us on 9/11/01 and the Fed reacts the next day to avoid certain economic disruption which could have led to the collapse of our banking system.  Sound familiar?   The Fed Initiative on 9/12/01, came in less than thirty hours after the second Twin Tower fell.  It was bold; moreover, it was consistent with their ninety-five year mission to maintain a stable currency, promote economic growth, oversee safe and sound banking practices and provide an efficient and competent payment system for its member financial institutions.   The 9/12/01 Fed...

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Four Wrongs

hherget@aol.com   Four Wrongs   The wrong person proposed the wrong plan to the wrong people at the wrong time. Translation: Wrong #1: Treasury Secretary Paulson should not be at the forefront of our economic recovery initiative; instead, it should be our Central Bank and its Chairman, Ben Bernanke.  ight back using its best trained forces; those who understand the field of battle and can arm themselves appropriately and act swiftly.   Fighting back with Congress is a losing battle, not to mention painful to watch.   + a static $700 Billion Bailout Plan administered by Wall Street won’t work...

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