Friday, September 22, 2017

Before Buying into the Idea that Fractional Reserve Banking has Some Sort of Fraudulent Roots, Listen To This Battlecry From A Supermodel

I've mentioned:
I only have two clickbait moves. There's the "Listen to this battle cry from a supermodel" (and variants) move:

"Before You Say You've Never Discriminated Against Someone, Listen To This Battlecry From A Model"
And the "one weird trick" move:
Warren Buffet Uses This One Weird Trick to Be Persuasive* 
I maybe should have gone with Buffet for this George Selgin piece at Cato, Sept. 6:

The “Bagging Rule” – Or Why We Shouldn’t Arrest (All) the Bankers
As our more regular readers know well, every now and then I like to take another stab at debunking the  myth that fractional reserve banking has fraudulent roots. Besides occurring in numerous textbooks, that myth is routinely expounded in the writings and lectures of certain contemporary Austrian School economists. Moreover, as we’ll see, it is occasionally given credence in reputedly scholarly publications by scholars who don’t identify themselves with that school.
It is relatively slow in DC, as I write this, with Congress out of session, and therefore as good a time as any to rejoin the old debate, which I do first by drawing attention to a paper: “Banks v Whetston (1596),” by David Fox, a Cambridge law professor and barrister, and the author of a fascinating legal treatise on Property Rights in Money (OUP, 2008).

A Hum-Drum Case
Although he wrote “Banks v Whetson” for a 2015 volume titled Landmark Cases in Property Law, Fox hastens to explain that the case in question may not really qualify as a “landmark” since “very few lawyers have heard of it and it does not have a strong history of citation in later decisions.” Its significance, so far as he’s concerned, lies on the contrary fact that it was perfectly hum-drum. Because of that, the case supplies a particularly clear illustration of the common law’s ca. 1596 understanding of property rights in money — an understanding which prevailed, according to Fox, “throughout the middle ages and into the early modern period.”...
...MORE

Blame Overlawyered for the introductory ramble:
Before buying into the idea that fractional reserve banking has some sort of fraudulent roots, consider the common law concepts of detinue, bailment, and debt...
*From that Buffet piece:

...I may have made a mistake with the 'only two moves' intro. Thinking about it we've also used the "blank, blank will shock you" template (and variations):

And then there was the whole Upworthy 'clickbait generator' phase.
Oh, and the "Buzzfeed Story Generator" chapter in the blog's life.
And the search engine optimization fiasco:
And the....where was I?
Think We're Not In A Housing Bubble? 
Maybe You Should Listen To This Angry Child Star.

Here's the Upworthy (style) clickbait generator.