Ron Paul's Audit the Fed proposal is not unreasonable given it would be required before doing a massive restructuring of the banking system. My personal opinion is that the Fed be reduced to the FDIC. Its window to be open to banks who pay insurance and whose assets are one tenth of one percent of the nation's GDP. Banks with more assets, investment banking, proprietary traders and insurance will not be part of club. Hopefully, in this new world, the bigger they are the more risk premium the market will demand and get. Funding of large projects would go back to Wall Street syndicates managed by private partnerships. These partners will pay salaries as truly merited since they will go quickly out of business otherwise. Salaries at small banks will be very dull indeed as they were during most of the previous century.
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