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Old System of Finance is Kaputt

Wolfgang Gerke, Bavarian Finance Center | November 4, 2008

Germans now lament eschewing the “glorious era” of state ownership of banks. ++ They are missing a cardinal fact, though: The European Central Bank’s independence “enabled it to serve as a corrective to governmental policies and powers,” whereas the US Federal Reserve implemented “interest rate and money supply strategies configured to meet the needs of the US government and Wall Street.” ++ Privately owned banks are not responsible for the crisis; the models they employed are – local vs. international investment.



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