Throughout the crisis that is last arguments had been made that Wall Street organizations must be rescued to save Main 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.
Though some advocate for the partnership that is public-private current commercial banking institutions, postal banking institutions could rather be an integrated 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 records, either with flat transfers, or ideally wages for federally funded jobs. This policy would inject cash into Main Street and stabilize rates and wages. [Read more…] about If the next financial meltdown strikes, a postal bank could need a bailoutвЂ”but it is less horrifying than your typical personal bank bailout.