September 2, 2010

Fractional-Reserve Banking in Afghanistan

There's a bank run going on at Kabul Bank—as can happen to any fractional-reserve bank without an FDIC, and indeed a run is the only free-market way to correct such crooked institutions. So one of the largest shareholders, US puppet Hamid Karzai's brother Mahmoud has a solution: "America should do something," he said. Kabul Bank "has money"—sure it does Mamoud—but cannot "withstand a stampede by panicked depositors," as Huffpo puts it in banksterspeak. Maybe the Taliban is telling the truth about such crooked regime banks. That would be terrorism indeed.

UPDATE It appears that the US Bankocracy will bail out its criminal kid in Afghanistan. Yet another war crime.

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