How did government create the problem of failing banks, apart from inadequate regulation?
The Capitalists Will Sell Us the Rope with Which We Will Hang
- Thread starter zdreg
- Start date
One major bank failing will take them all down. Unless you are 13 years old, you’ve seen this 3 times now.
Don’t look at it in terms of pennies. your allowance will likely fit in a few hundred dollar bills.
inadequate audit of the books of the bank,
Explain yourself. It's a balance between risk taking and risk aversion. Govt is for stability and financial safety, while risk takers should be allowed to fail.
Agree, the fact that banks don't have to mark investments to market on a daily basis and don't have daily reporting requirements of those investments given that they have the ability to multiply money by a factor of about 10 is preposterous. Does not hold up to any serious scrutiny during times of stress. Even guys like Barney Frank whose name was literally in the name of the bank regulation act post GFC but subsequently did a 180 and worked for Signature Bank before it went under should tell you everything that is wrong with the current system. A nepotistic system of revolving doors where the influential and powerful can lobby themselves into the pockets of politicians and regulators. This applies to the SEC, FTC, FDA, and most other regulatory bodies. Each single one of them have utterly failed on the grandest level imaginable.
Anyone serious about regulating them can. What are you talking about? Pharmaceuticals, banks, hospitals, telecoms in many other highly industrialized countries are all private and profit oriented and yet through regulations are forced to operate within the allowed bandwidth and are profitable yet are stopped short of abusing their positions of power. To a large degree at least. When will we learn that unregulated capitalism is as poisonous than socialism or communism.
The abusive power elite in America wants to convince all of us that strong regulations and capitalism cannot coexist, yet they are disproven by many European and Asian markets.
The US, half of European countries, 40% of African and Asian countries have gone bankrupt over the past 200 years, many multiple times (the US 4 times if I remember correctly). Yet over the part 70 years those nations who embraced a milder version of capitalism (social capitalism) that implements strict regulations for systemically important corporations and organizations have on average benefitted their citizens way more than the US has. That should tell you at least something...
The abusive power elite in America wants to convince all of us that strong regulations and capitalism cannot coexist, yet they are disproven by many European and Asian markets.
The US, half of European countries, 40% of African and Asian countries have gone bankrupt over the past 200 years, many multiple times (the US 4 times if I remember correctly). Yet over the part 70 years those nations who embraced a milder version of capitalism (social capitalism) that implements strict regulations for systemically important corporations and organizations have on average benefitted their citizens way more than the US has. That should tell you at least something...
What about the people who lose your life savings were it not for a government backstop?