Jennifer Burns

So not directly, we don't have him on record saying this, but apparently Hoover records in his memoirs that Mellon said something like, liquidate real estate, liquidate stocks, purge the rottenness out of the system, people will live a healthier life.

And certainly there were members of the Federal Reserve who felt like it would create, they didn't say moral hazard, but it would create what we now call moral hazard, bad habits, were we to intervene and to save failing banks because failing banks need to be taught a lesson. They need to be taught discipline. And so a lot of people, I think, saw it in the context of discipline.

And certainly there were members of the Federal Reserve who felt like it would create, they didn't say moral hazard, but it would create what we now call moral hazard, bad habits, were we to intervene and to save failing banks because failing banks need to be taught a lesson. They need to be taught discipline. And so a lot of people, I think, saw it in the context of discipline.

And certainly there were members of the Federal Reserve who felt like it would create, they didn't say moral hazard, but it would create what we now call moral hazard, bad habits, were we to intervene and to save failing banks because failing banks need to be taught a lesson. They need to be taught discipline. And so a lot of people, I think, saw it in the context of discipline.

This is discipline. And if you remove the discipline, you'll be taking away something fundamental in society.

This is discipline. And if you remove the discipline, you'll be taking away something fundamental in society.

This is discipline. And if you remove the discipline, you'll be taking away something fundamental in society.

No, no, he didn't see that. And what's really interesting is the number of incredibly radical proposals that he and his teachers were floating. So I've mentioned Frank Knight. Another really important influence on Friedman was Henry Simons, who was a junior professor at Chicago. And Simons had this idea for what he called 100% money.

No, no, he didn't see that. And what's really interesting is the number of incredibly radical proposals that he and his teachers were floating. So I've mentioned Frank Knight. Another really important influence on Friedman was Henry Simons, who was a junior professor at Chicago. And Simons had this idea for what he called 100% money.

No, no, he didn't see that. And what's really interesting is the number of incredibly radical proposals that he and his teachers were floating. So I've mentioned Frank Knight. Another really important influence on Friedman was Henry Simons, who was a junior professor at Chicago. And Simons had this idea for what he called 100% money.

which would be a law that says banks have to hold 100% of the deposits they receive. They can't loan them out on the margin. So this would completely and totally have overhauled the U.S. banking system.

which would be a law that says banks have to hold 100% of the deposits they receive. They can't loan them out on the margin. So this would completely and totally have overhauled the U.S. banking system.

which would be a law that says banks have to hold 100% of the deposits they receive. They can't loan them out on the margin. So this would completely and totally have overhauled the U.S. banking system.

And he would have said there's a category of things called banks where you get deposits, and then there's going to be a category of sort of – he didn't say investment banks, but investment vehicles that will invest. So similar to what did happen in some ways in the banking reforms in that –

And he would have said there's a category of things called banks where you get deposits, and then there's going to be a category of sort of – he didn't say investment banks, but investment vehicles that will invest. So similar to what did happen in some ways in the banking reforms in that –

And he would have said there's a category of things called banks where you get deposits, and then there's going to be a category of sort of – he didn't say investment banks, but investment vehicles that will invest. So similar to what did happen in some ways in the banking reforms in that –

In the 1930s, the investment banks were split from the deposit banks and the banks that took deposits were much more highly regulated and they were supported by the FDIC. But the point being, the Chicago school had these very radical proposals for reform. Go off the gold standard, you know, restrict the currency, you know, change the banks, immediately relief payments now.

In the 1930s, the investment banks were split from the deposit banks and the banks that took deposits were much more highly regulated and they were supported by the FDIC. But the point being, the Chicago school had these very radical proposals for reform. Go off the gold standard, you know, restrict the currency, you know, change the banks, immediately relief payments now.

In the 1930s, the investment banks were split from the deposit banks and the banks that took deposits were much more highly regulated and they were supported by the FDIC. But the point being, the Chicago school had these very radical proposals for reform. Go off the gold standard, you know, restrict the currency, you know, change the banks, immediately relief payments now.

What is important to note, though, is that they thought of all of those as emergency measures to get through the emergency, not as permanent alterations in the state of what had to be and not permanent alterations between state and market, where the Keynesian assumption is things have changed, times have changed, we're in a new dispensation, and we need a new relationship.