[nickik]

> But the solution for this would be easy, Investor must be given the choice if he wants to allow/disallow the bank to loan out his deposit. Similarly how it works with long positions at a brokerage firm.

That is totally wrong. That solution has existed for 100s of years and you can have 100% reserve accounts now if you like.

The reason its not used now is the same it was not used in 1800 Amsterdam. People want interest.

We don't need a 'solution' its a perfectly fine system IF you actually allow banks to be real companies and not part of the government protected services. The problem is the government saving banks.

Note, I have nothing against monetary policy during a crisis, but that should focus on the avg. bank, not at saving bad actors.