Who should be a banker

From the article: "Most people today know more about their iPod than the soundness of their bank’s balance sheet because they think the magical FDIC is guaranteeing their deposit. This has led to people only caring about the interest paid on their savings or money market accounts and not on the actual bank. Well the FDIC doesn’t really have any money, it just has our money that is taken via taxation."

For a while now, as the Shire Silver projects have progressed, I've been tempted to add traditional banking services to the list of services we will provide. Of course, in today's reality, with government intruding all over the place and inserting its tendrils where they can do the most harm, providing bank-like services is fraught with peril. That is one of the main reasons why I don't believe Shire Silver (or this author) will get into acting like a bank any time soon. Also, getting banking right is hard, and we don't really need that challenge right now.

But this article on Survival Blog got me thinking. Do we really need a "bank"? If so, who would I like to see operate one?

Do we need banks at all?

It is my hope that once government is no longer meddling with the economy, most people would retake control over their responsibility to look after their own money. Most people would probably be served fine by a regular home safe and a 1911, especially right after a TEOTWAWKI scenario.

But there would probably be some smart people who had prepared for what is to come, as well as those who quickly build up more wealth than they can safely store themselves. I think it is a safe bet that no one is going to building a personal vault like Scrooge McDuck, so safe warehousing will be a needed service.

Plus there are the associated banking services that are usually provided along with secure storage. Checks may not be around as we know them now, but there will be a need for a way to authorize transfers between bank accounts. Perhaps lending might become separated from banking, but lenders will be needed, and they would certainly make use of banking.

Who should run a bank?

As I ponder my list of friends and acquaintances, not very many stick out as potential bankers. A lot of them don't seem to be quite competent in business skills, and many others are not as stridently trustworthy as I feel the market would demand. A few who at first seem like good candidates on second thought are too willing to take on challenges that are seen by some as controversial (think of open civil disobedience or openly challenging current governments - possibly to the detriment of the business).

A good banker should also have a thorough understanding and acceptance of Austrian Economics. After all, it is Keynesian, and to a lesser extent, Chicago School economics that are causing such havoc in today's society. We certainly don't want anyone propagating such ruinous theories.

Do you agree? Is there anyone in the freedom movement you believe would be a good banker? Discuss this on our forum!