Financial Institutions Quotes
The Congressman was notorious for his extreme and unusual views of things. See {606976} for another of his extreme statements which turned out to be untrue. McFadden quotations are sometimes used to show that there is almost no limit to how absurd a view a politician in general, or a member of Congress in particular, might take and make public.
Many companies appear to be doing much better than they really are. Often they employ PR professionals to create that impression. Some companies are not even solvent, but the only way we can all tell is to have a recession generally or in that particular sector—the equivalent of the tide going out.
Jefferson was of the opinion that a central bank was unconstitutional and that it was a great economic danger to the nation, a view also held later by President Andrew Jackson.
This was in the midst of the debate over The Recharter Of The Bank bill
This warning was a decade before the Meltdown of 2008, but was not heeded by any of the politicians. As a result a number of the companies that made all those risky decisions assumed that if something went terribly wrong the government would not let them fail. Unfortunately, they were right and the taxpayers spent billions to prevent companies from failing. After the meltdown all the politicians vowed to end the too big to fail concept, but while some improvements were made, the Congress could not come to agreement, and the markets and a number of companies think that they are still too big to fail. This is particularly true for Defense Contractors where the government has and probably will in the future, protect irresponsible companies from failure if they are the only company that makes needed weapons and other equipment.
After the Great Recession the Mexican bankers, like their American counterparts, tightened their credit standards so much that the only people who could get loans were the ones who didn’t need it. If banks do not make loans, it matters not that they are solid institutions that are well capitalized.
Attempting to defend charges that his bank and others were engaged in monopolistic practices:
He was against paper money. At the time, any bank could issue its own paper money or “banknotes”. However other banks would not redeem the banknotes for the full amount; they would “discount” the note. Usually, the further away the bank was from the original bank, the more discount they took. Interstate commerce was almost impossible. Alexander Hamilton, Jefferson’s nemesis, had a much more modern point of view and fortunately his view prevailed. Paper money could only work if it was issued by a central bank with no discounting by other banks. The paper money had to be “legal tender”.
