<blockquote>'The way to stop runs on the bank is easy enough: stop fractional reserve lending and other fraudulent lending practices.
..
Under a full-reserve 100% gold-backed banking system, inflation would be nonexistent and bank failures would be few and scattered..
..
The proper conclusion is that gold is a function of mistrust in fiat currencies in general, not just the US dollar. However, nothing moves in a straight line including faith (or lack thereof) in central banks' ability to handle this crisis.'
- Mike "Mish" Shedlock,
Full-Fledged European Bank Run; ECB Deposit Insurance is Not the Answer; How FDIC Played a Part in the US Real Estate Bust; Monetarist Fools are Everywhere; Believe in Gold, May 21, 2012</blockquote>
'..the near-collapse of the euro area banking system .. reserve requirements to a paltry 1%..'<blockquote> 'The International Financing Review has published an excellent article chronicling the near-collapse of the euro area banking system that was temporarily halted by the ECB's mega-LTROs and other easing measures (let us not forget the lowering of reserve requirements to a paltry 1% and the frequent lowering of collateral eligibility criteria). It is entitled „Back from the brink: How Europe saved its banks from meltdown (for now)“ and we think the 'for now' should be strongly emphasized. We highly recommend this chronic of the banking crisis as a weekend read, whereby our regular readers will likely be familiar with most of the events the report describes.'
- Acting Man,
Euro Area Banks – Europe’s Zombies On the Brink, May 18, 2012</blockquote>
Context<blockquote>
(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'Banking - '..time to clear the decks.''..inflation cannot be considered as a way of life and that it is imperative to return to sound monetary policies.''..cheap credit would ultimately lead to a lingering infirmity..''..a financial system of the bankers, by the bankers, and for the bankers—consumers and shareholders be damned.' - Hamel</blockquote>