Aldrich proposed the implementation of a national bank for the 1907 incident could not repeated, just what was needed to make a huge fraud.
In 1910 a secret meeting was convened to sign the legislation for the formation of the new reserve bank of the country, the U.S. central bank in America. Legislation was written by bankers, not lawmakers.
In 1913, the law ended and pushed by the banking political front, Senator Aldrich, Woodrow Wilson became president, had agreed to sign the legislation proposed by Aldrich bank in exchange for political support, and 2 days before Christmas the legislation is accepted and put into effect.
Now, the public was told that the new system was financially stable and that inflation and the problems were a thing of the past. But the truth was that it was a plan to fill the ambitions of those few who knew the truth of this.
In the period from 1914 to 1919 the national bank had increased almost 200% the amount of currency in the country, resulting in loans of all types to the national banking network and the general public. And in 1920 the national bank, asked for all the loans made to bank networks around, this only caused the bankruptcy of 540 independent banks consolidating federal bank national bank monopoly.
Between the years 1921-1929 National Bank again to extend their loans, increasing the amount of currency by 62%, and created a new type of loan called the margin loan, which would create another massive problem.
A margin loan is one loan made by a stock broker that allows a customer to buy shares on credit. A simple example is a consumer who buys shares worth $ 10000 but only using $ 5,000 of his own pocket, the other percentage of the purchase in this case 50% would be covered by the margin loan. Simple, but treacherous, as the condition of the loan he could be back at any time, 24 hours a deadline for payment of the loan. With this many people began to earn money easily, and became a very popular procedure.
knew?
In 1910 a secret meeting was convened to sign the legislation for the formation of the new reserve bank of the country, the U.S. central bank in America. Legislation was written by bankers, not lawmakers.
In 1913, the law ended and pushed by the banking political front, Senator Aldrich, Woodrow Wilson became president, had agreed to sign the legislation proposed by Aldrich bank in exchange for political support, and 2 days before Christmas the legislation is accepted and put into effect.
Now, the public was told that the new system was financially stable and that inflation and the problems were a thing of the past. But the truth was that it was a plan to fill the ambitions of those few who knew the truth of this.
In the period from 1914 to 1919 the national bank had increased almost 200% the amount of currency in the country, resulting in loans of all types to the national banking network and the general public. And in 1920 the national bank, asked for all the loans made to bank networks around, this only caused the bankruptcy of 540 independent banks consolidating federal bank national bank monopoly. Between the years 1921-1929 National Bank again to extend their loans, increasing the amount of currency by 62%, and created a new type of loan called the margin loan, which would create another massive problem.
A margin loan is one loan made by a stock broker that allows a customer to buy shares on credit. A simple example is a consumer who buys shares worth $ 10000 but only using $ 5,000 of his own pocket, the other percentage of the purchase in this case 50% would be covered by the margin loan. Simple, but treacherous, as the condition of the loan he could be back at any time, 24 hours a deadline for payment of the loan. With this many people began to earn money easily, and became a very popular procedure.
knew?
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