The History of Money and Banking

Santander Bank, formerly known as Sovereign Bank, is a wholly owned subsidiary of Banco Santander, a Spanish bank. The bank mainly operates within the North Eastern region of the United States, with its headquarters based in Boston, Massachusetts. Santander bank offers various financial services and products, among them retail banking, mortgages, corporate banking, capital markets, insurance, cash management, trust and wealth management as well as insurance. The bank holds over $77 billion in assets, and has 650 branches. It also has over 2000 ATMs and employs 9800 employees.

Both qualitative and quantitative research methodology will be use to investigate the hypothesis. The use of case study, questionnaire, interview and statistical analysis will be used to observe and asks questions about the views of the micro, meso and macro levels of society on my topic. Problems that could occur with these methodology is not having enough adequate data to proceed the with each analysis. Secondary research will be used to make subjective judgments about what data is useful and what is not for the motive for the research process.

Life: Where do we come from? How did we get here? These are questions each one of us eventually asks ourselves and, in so doing, searches for the answers. It is intrinsically woven into us to know the basis of what sustains us. Why is it then, that the general public is satisfied in knowing only about current celebrity gossip and is content to remain ignorant when it comes to where our currency originates and how it is produced? Some may find it too confusing and overwhelming a subject about which to think. Is it possible that its perplexity is not by mistake? James Corbett mentions in his documentary, Century of Enslavement: The History of The Federal Reserve, “Our monetary ignorance is artificial, a smokescreen that has been erected on purpose and perpetuated with the help of complicated systems and insufferable economic jargon.” (Corbett, J., 2014, July 6.https://www.youtube.com/watch?v=5IJeemTQ7Vk)

Other than causes of the great depression theirs also a lot of different theories but the main two are the demand driven theory, and the monetarist theory. First the demand driven theory that states that the “economic output is a strongly influenced by aggregate demand”. Lastly theirs the monetarist theory they state that “variations in the money supply have major influences on national output on the short run and on price levels over long periods.

What issues divided the New York’s “old money” merchants (trade and banking) from its “new money” manufacturers?

C/D = 0.1; T/D = 2; ER/D = 0.2, [pic], [pic], MB = 1000. Compute the money multiplier, the money supply, the level of currency and checkable deposits, the level of time deposits and excess reserves, and the level of total reserves and required reserves. Use the model of money supply determination discussed in class. Show your work.

In an instant a single organization, with minimal government oversight, can influence entire markets and monetary supply of the country with the largest economy in the world. The United States founding fathers established a government system to distribute certain powers of the federal government to particular branches that have checks and balances in place to assure efficiency and openness among its divisions. One may assume that the organization that controls the monetary supply of an economic powerhouse of a country would have strong oversight and control over the policies they carry out. The Federal Reserve, also referred to as The Fed, has a purpose to protect and control the fiscal system of the United States to create a safer lending and borrowing market for private citizens, businesses, and the federal government. Americans perceive the Fed as an extremely powerful organization. Some have asserted, including Hillary Clinton’s spokesman, Jesse Ferguson, that “The Federal Reserve is a vital institution for our economy and the well-being of our middle class” (qtd. in Shapiro 7). Unfortunately, Federal Reserve financial policies have become detrimental to the growth of the national economy and the dollar, therefore, congressional actions against the Federal Reserve Bank are a necessity to avoid continuation of instability in both US and world markets.

The Federal Reserve System is the most powerful institution in the United States economy. Functioning as the central bank of the United States, acting as a regulator, the lender of last resort, and setting the nation’s monetary policy via the Federal Open Market Committee, there is no segment of the American economy unaffected by the Federal Reserve [endnoteRef:1]. This power becomes even more substantial in times of “unusual and exigent circumstances,” as Section 13(3) of the Federal Reserve Act gives authority to the Board of Governors to act unilaterally in lending and market making operations during financial crisis[endnoteRef:2]. As illustrated by their decision making in the aftermath of the 2007-2008 Great Recession,

This research is being submitted on June 14, 2010, for Mr. Bergeen’s Microeconomics course at Rasmen College by John Divler.

Giovanni di Bicci de’ Medici founded the Medici bank in 1397 after splitting from his nephew to establish a bank branch in Florence. As the new bank grew and expanded, so did the wealth and power of the Medici family. When Cosimo il Vecchio de’ Medici, Giovanni’s son, took over the banking business in 1434, the increasing economic power of the Medici family allowed them to establish themselves as effective rulers of Florence while keeping the republican system of government nominally intact. The bank provided the Medici family a combination of economic and political power that facilitated the stability of Medici rule. Thus, the failure of the Medici bank during the reign of Lorenzo il Magnifico was key to the collapse of the Medici

Recession cycles are thought to be a normal part of living in a world of inexact balances between supply and demand. What turns a usually mild and short recession or "ordinary" business cycle into an actual depression is a subject of debate and concern. Scholars have not agreed on the exact causes and their relative importance. The search for causes is closely connected to the question of how to avoid a future depression, and so the political and policy viewpoints of scholars are mixed into the analysis of historic events eight decades ago. The even larger question is whether it was largely a failure on the part of free markets or largely a failure on the part of government efforts to regulate interest rates, curtail widespread bank failures, and control the money supply. Those who believe in a large role for the state in the economy believe it was mostly a failure of the free markets and those who believe in free markets believe it was mostly a failure of government that compounded the problem.

This section of the article shall address the approach used in the case study, providing explanations of the preferred research method, sample details, variables under examination, data collection

The Bank of the United States is a symbol of the long held American fear of centralization and government control. The bank was an attempt to bring some stability and control and was successful at doing this. However, both times the bank was chartered, forces within the economy ultimately destroyed it. The fear of centralization and control was ultimately detrimental to the U.S. economy.

Briefly explain the rise and fall of LTCM. What was the moral hazard issue the fed was worried about? How did they try and get around the moral hazard issue? What specifically was the Fed's role in the bailout? What roles specifically did Bear play and not play in the LTCM's life and death?

* In the first paragraph, discuss the relevant economic theory of your topic (your textbook is a good source for this paragraph).