[anon84873628]

I can't really follow the comment. You seem to start a thesis about

>In a fixed money supply currency, fractional reserve banking should be illegal and banks should instead make money off fees

Which, ok... But then jump to

>The housing market booms and busts because of the wildly fluctuating availability of credit caused by the money multiplier

Which seems to be a thesis about our current world. I can't figure out the connection between them. Are you saying this is evidence of why the first thesis is correct? But USD is not a "fixed money supply currency", which was how we started out.

I understand that easy credit induces demand for housing which has inelastic supply and somewhat sticky prices. This doesn't seem to be a problem of Fractional Reserve banking though. The VCs in your proposed system will still invest in mortgages as a fairly safe bet, because people are highly motivated to have a place to live.

And mortgages are an important tool so people have a place to live _before_ saving for 30 years. Given our current population dynamics and everything else...