Through the crisis that is last arguments were made that Wall Street businesses needed to be rescued to conserve principal Street. Then a stable postal banking systemвЂ”a safe place for most peopleвЂ™s moneyвЂ”could be our best defense if preventing Main Street from falling into the flames along with Wall Street is indeed a national concern.
However some advocate for the public-private partnership with current commercial banking institutions, postal banking institutions could rather become an important bit of a brand new monetary architecture insulating the general public and Main Street organizations through the storms of high finance.
As an example, imagine the economy busts and folks begin to lose their jobs. The Federal Reserve could directly credit postoffice reports, either with flat transfers, or preferably wages for federally jobs that are funded. This policy would inject cash into principal Street and support costs and wages.
And as it pleases if you donвЂ™t like that idea, as even conservative commentator Reihan Salam at The National Review has recognized, a strong postal banking system could eliminate the need for federal deposit insurance and create more room for the private financial sector to innovate. Continue reading As soon as the next financial meltdown hits, a postal bank may need a bailoutвЂ”but itвЂ™s less horrifying than your typical bank bailout that is private.