When I think of financial crises, I remember the comments of JP Morgan founder of the great banking dynasty. He was asked if commercial credit was based primarily upon money or property, he denied it. “No, sir. The first thing is character,” he said. “Before money or anything else. Money cannot buy it.”
Morgan snapped during a crisis, "You’ve got your reserves. Use them! That’s what reserves are for.” It seems like the Fed has to remind banks of JP Morgan's reserve view.
No comments:
Post a Comment