Originally published at http://www.commondreams.org/views/2020/05/18/another-bank-bailout-under-cover-virus
An excellent article and while I am Canadian I am 100 percent in agreement with you. The banks in any given Country should be Public Utilities and not entities used to generate profits for some small handful using taxpayer dollars.
So Kevin Hassett, the lowest IQ economic adviser in history, just said there is no need for a fourth stimulus package.
The stock market rose nearly 1,000 points today after the Fed announced another round of additional bailout money to industry. Meanwhile no mention of bailout to the general public.
Not to mention 40 plus million living murkins who are being told that they will receive their $1200 stimulus in June or July despite tens of millions of murkins including millions of deceased murkins receiving their $1200 in April.
Just as occurred with the $300 per head 2009 stimulus, the warrants or checks the deceased receive include a “deceased” note on them, so this is not a mistake, just another way the best Congress money can buy sticks it to the voters they loathe.
New Deal regulations dovetailed with the FDIC formation, thereby making FDIC insurance work fine until New Deal financial services industry regulations (including those related to banking and insurance) were decriminalized in the name of deregulation between 1978 and 2007.
Wall Street loves the fivefold FDIC insurance premiums banks have paid since the 2008 crash that assure depositor rates will stay low forever, making the stock market the only game in town for most investors during the past decade and for many decades to come.
should be public utilities.
Yes Ma’am !
“Rehypothication” seems the latest form of… rehypothication; must be a critical factor, seeing as they are willing to allow that WEASEL word out into the media. Critical factor, because after all, it answers what the Bankers SAY they want: to be able to give out dollar-binding loans on a moment’s notice, and expect to be promptly paid “back” (um, NOT “back,” as this is how MONEY IS MADE BY BANKS: ON THE SHOULDERS OF THE “BORROWER,” AFTER THE BANK CREATED THE MONEY IN ORDER TO “LOAN” IT OUT).
So, ANOTHER way for the Banks to cheat? Yes it is, as “rehypothicating” itself “allows” the cheating, by allowing one dose of collateral to service many times its worth in loans, thus ENSURING that the whole house WILL collapse, the first time the Government decides NOT to jump in with a bail-out-or-in…
Result? ONLY the abject enslavement of Government, by those whose driving urge has always been to sell it off and pocket the proceeds…
And given that even the one-time exercise of such an option violates both the Capitalist “Ethic” (sorry, laughing always sends my sinuses spraying, here’s a towel… and a face-mask…) and also any real definition of a “Free” market, the very existence of such a concept as “rehypothication” should be rightly seen as the obviation of any claim of superiority put forth by the Church of Capitalism…
What is this ‘while I am Canadian’, guaranteed that this is proof positive that CBC news did their duty in hiding the reality of our banks in Canada. Wake-up, what in the world would be so different in Canada versus the biggest elephant ‘shallowing out’ so many of our Crown Corporate --protectorates in Canada. We used to be in a ‘safe position’, not anymore. Even the misrepresented frame of Canada not being in the 2008 fray of bank bailouts…WRONG…we had bully/coward Harper saying political mis-speak to the press while bailout out all 5 of our banks to the tune of 120 billion (because they went --outside their mandate of domestic business and setup international branches to do one thing—play with the big banks in ‘derivatives’ (that they were just as dumb about as the gambling investment banks in the US)…
Result, we paid out 120 billion in bank bailouts to our 5 phony sanctimonious banks --one almost went bankrupt…and the CBC News made a point of NOT informing the very people that pay their damn pay—taxpayers. So much power has been siphoned without oversight–by our banks —their no longer respected for prior values of integrity…
Arithmetic: estimated crisis package=$13 trillion. Student loans outstanding $1.7trillion, carloans $1 trillion, credit card debt $1.3 trillion=$4 trillion leaving $9 trillion which could be used to write down mortgages. All that money would end up in banks & corporations thus bailing them out. The people would have more spending money to stimulate the real economy. Will someone please tell me why this would not work & why I have not heard it anywhere.
My reasoning is that the .00001% that run the system want control. A debt free people are harder to control. This year & in 2022 Congress needs to be replaced with brave & intelligent people that will use the Constitutional power to run the country for the people.
Ellen Brown is right to say that letting banks “borrow short and lend long…while promising the depositors that they can come for their money on demand” is a “sleight of hand”.
However, it’s actually worse than that, because even if there is no “short / long” mismatch, what banks do is still a sleight of hand. Reason is that lending on depositors’ money while telling depositors their money is safe is obviously dishonest because loaned out money is NEVER totally safe!
She might also have mentioned that when any other financial institution does that (e.g. a mutual fund, firm of stockbrokers or a private pension scheme) they get prosecuted for fraud. Ergo the above activity of banks is quite clearly legalised fraud.
I actually enlarge on the above two points in a recent article of mine entitled “The Crucial Flaw in the Bank System”. You’ll find it easily by Googling that title and my name, Ralph Musgrave.