Originally published at http://www.commondreams.org/views/2020/04/03/was-fed-just-nationalized
Won’t these actions further accelerate the growing market control (controlling 25% of US bank assets in 2008, 50% in 2016) exerted by the too-big-to-fail (TBTF) banks ?
Banks should be nationalized IMO. Then as the peoples property held in Common harnesses to benefit the people. They can never be “TBTF” under that scenario.
If that power and control left in the hands of a small percentage of the investor class then it a recipe for disaster.
Despite many progressives repeatedly warning during the aftermath of the 2008 crash: " too-big-to-fail (TBTF) is too big to exist", the corporations, their media and politicians handed all the good cards to the TBTF banks and other corporations, enabling them to double or triple their market shares during the past decade which will now cost US taxpayers way more than the $20 trillion plus in bailout schemes that Congress put US taxpayers on the hook for after the 2008 crash.
And this is capitalism??? Why not just give everyone a million dollar loan at 1%----we will pay it back over 70 yrs----or maybe I’ll refinance for the 5 million loan at 2%----or maybe the rich should start paying THEIR BILL!
a very modest one-time payment of $1,200, and unemployment benefits have been extended for the next four months."
Very modest is a mild understatement (afraid of getting arrested?). IT’s an act of violence to steal from the poor to decorate the tables of the rich. even hotdogs for a family of 4 cost more than that. in one month?! then what? payday loans without paydays? followed by debtors’ prisons? and putting our threads up as collateral clothing? This is completely upside down from what should be happening. i think the Squad was asleep at the wheel. disappointing. only if McConnell gets beat or if more Ripugnantcants get positive…and what a good word for it.
“the FED run as a public utility:”
I’d need to see PG&E improve it’s fireman role before i’d allow that–if i were king.
The stimulus package 2.2 to 10 trillion available. That amount could pay student loan, car loan, credit card debt and still have enough for a UBI of 3000 per person per month or half+ mortgage debt. That would fund the banks carrying those loans and provide people with money to stimulate the real economy. Why did that not happen and why has no one in the media mentioned it?
You are right on. The TBTF have taken out about a million years worth of cheap loans paid by us with real money.
Agreed, and that was going to be what we were going to argue in the next crisis – no more bailouts without strings attached; the banks should be nationalized. But guess what, the Fed bailed them out already without asking anybody’s permission, no Congressional vote, they just did it. So we need another angle.
An explanatory flowchart of who is doing what to whom in all this would be fairly useful.
The whole economic system was created from the twin illusions of Disunity and Insufficiency.
The idea that there is “not enough” of what humans need to be happy ,and the idea that human beings are separate from each other ,forms the basis of our entire economic model.
It’s time for the New Spirituality to provide us with a new basis for a new economic model .
For further reading the book Tomorrows God and the chapter Throwing Out The Money Changers Again…
We could do with a Whole Systems Approach. Creating a system that works for everyone .
We have had the Greed of the few for far too long.Playing us like fiddles.
Greed is a disease of fear…fear leads to the…well you know that story !
All solutions are Spiritual in Nature this global event is a reminder to All of Us.
We Are All One.
Great idea, but difficult to do in two dimensions!
I will admit I have not read the entire article… but I guess I dont understand what you think the alternative option in a crisis would be? In a sense Black Rock owns us and in a sense they are propping us up… That said we are a better bet than most countries in a crisis… obviously and we have a military and a government created… in theory to protect and represent people. In this instance we are lucky our military is so strong should the need to protect people from big business should ever arise. Who would have thought? But to imagine this is a purely United States dilemma seems a tad dreamy? Lots of governments might not have the backing or government set up so that people are somewhat padded from big business… should they need it in a crisis. I guess my only thing here is you seem to have a lot of knowledge on business and loans but what is the realistic alternative that you are offering that will work in the world stage? Totally agree on Dodger assets… but what are you offering we should do instead realistically… you might have said something. I’ll read it again. I just think you have to be careful of pointing fingers unless you are fully willing to shoulder the eventual fall out of your decisions and let’s hope who makes the decisions also has the moral capacity to understand them.
And yes… I agree the economic and monetary set up is a scary and frightening thing. But you have to have a better alternative and options ready right… That’s what they are supposedly navigating for us right but half the fricking people have zero to no understanding. And I wont say I know alot but more than most.
This whole “solution” is based upon a complex and convoluted system where borrowing is the fundamental mechanism. Dare to think outside the box. Instead of using SPV (wink wink) to fund needed spending, just do it directly! Why does everyone feel compelled to somehow game a completely opaque and failed system?
Kucinich dared to get it right with his proposed legislation (Google the 2011-12 NEED Act HR2990) where the Treasury openly, transparently and democratically creates the money WE need without having to use these crazy schemes that, in the end, benefit those who already have the money.
Pretty good article, Ellen, but in response to the question in the headline - was the Fed just nationalized - the answer is: not at all! In fact, the Fed was and still remains a private corporation owned by the regional banks, which as you know are in turn owned by the the too big to fail mega banks.
What we are seeing here is the corporate state coming out of the shadows (where it has lived since 2013 when the Federal reserve Act was passed) and emerging into the light of day. The Fed has not been nationalized, the US government has been OFFICIALLY privatized!
NO the Fed was not just Nationalized, the U.S. Treasury was privatized!
Well I am a Canadian but am of the belief we should do the same things up here in Canada. Nationalize the banking system and make it work for the people. Our own Central bank went the same way as your Fed down there turning the control of the money supply to the private banking system.
This has its roots in the mid 70’s and that period of high inflation where Western Governments introduced wage and price controls and the like. The economists all claimed it was because Governments were printing too much money and more of the creation of the money supply should be turned over to the private banking system as they were more disciplined. The reality is that inflation caused by Nixon defaulting when he removed gold as backing to the US dollar, transformed it into a petrocurrency and started printing up dollars to finance the Vietnam war.
Just my opinion.
Hmm, I wonder if the ONLY banks that should be considered “too big to fail” are nationalized banks, as the “peoples property held in Common”
Ah yes, and look what the Ds did to Kucinich …