Detlev Schlichter (in 2011)

 ‘Undercapitalized banks’ is code for banks that lent too much. How can banks have lent too much, and obviously have done so for years, decades even, and have done so the world over in the most enduring and persistent credit binge in history, when they are all under the control of the state central bank, which in a paper money system has the monopoly of printing unlimited bank reserves and administratively setting short-term interest rates, and thus controlling lending conditions? Is this not properly called state failure, rather than market failure?