From “Effects the business cycle exerts on the banking sector”:
Hence we can conclude that an inherent trend in the privileged exercise of fractional-reserve banking leads to bank consolidation and encourages bankers to develop and maintain close relations with the central bank as the only institution capable of guaranteeing banks’ survival in moments of crisis, situations banks themselves create regularly. Furthermore the central bank directs, orchestrates, and organizes credit expansion, making sure that banks expand more or less in unison and that none stray far from the established pace.
Eerily familiar… and for fun, from “Marx, Hayek and the view that economic crises are intrinsic to market economies”:
To contend that an economy of real socialism offers the advantage of eliminating economic crises is tantamount to affirming that the advantage of being dead is immunity to disease.
De Soto goes on to provide a clear and detailed solution which he claims could provide stable and gently growing constant prosperity.