Why fractional reserve banks become “too big to fail”

GoldMoney 2011-05-01

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View the full 28-minute interview at http://www.goldmoney.com/huerta-de-soto-interview. In this video, Jesús Huerta de Soto, Professor of Political Economy at Rey Juan Carlos University, Madrid, discusses why fractional reserve banking creates “too big to fail” banks, and why an 100 per cent reserve system would give smaller banks a chance to compete. He also discusses the paradox of blaming the free market for the financial crisis.

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