Home | About | Donate

With Banks 'Still Too Big to Fail,' Another Financial Meltdown Looms


#1

With Banks 'Still Too Big to Fail,' Another Financial Meltdown Looms

Deirdre Fulton, staff writer

Seven years after the financial crisis began, many of the conditions that helped cause the near collapse of the U.S. banking system—and that were used to justify the multi-trillion-dollar U.S. government bailout of mammoth financial institutions—endure, warns a new report from the Corporate Reform Coalition (CRC).


#2

The main problem I see with this is the fact that those to be regulated own the regulators. The banksters bought the government a long time ago and have consolidated their gains ever since.
* I hope We the People can rectify this, but we've done pretty badly so far, dang it!
;-})


#3

Dodd Frank started out as a mouth with only two teeth left in it. In December 2014 the banksters (who own the regulators AND the legislators and executives who create and delete regulations) ordered Obama and Congress to remove those two teeth, citing the drop in oil prices as the reason that regulating derivatives will reduce their profits and is therefore unacceptable.

Neither Fulton,Taub or Gilbert mention the need to reinstate Glass-Steagall, the first step needed to effect any meaningful reform.


#4

another financial collapse is inevitable- empire is preparing itself to further exert it's societal control. How this manifests specifically remains to be seen. A catastrophic event its very much on it's way; whether it will be a financial or "terrorist" related catastrophe on USA soil is another discussion. A societal shocking event in the USA will occur soon in order for the oligarchs to justify this farce of a democracy-hope as forsaken the USA


#5

Yep! Hence my point.
;-})


#6

Become familiar with the concept and function of crypto currencies.


#7

In 2009 the Obama Administration allowed "relaxed rules" for banks with worthless mortgages. The banks were allowed to carry any distressed property on the books at 2006 top-of-the-market prices for as long as they wanted. The only catch was that they couldn't sell the property.

The result? Worthless trash houses sitting around, getting their pipes ripped out sometimes by thieves. Down at the bank those houses and half-built communities are worth every penny of what the bank mortgaged them for. Now you know why your bank is solvent. Now you know why, if there's a run on the bank, your bank will fold. It's because your bank can't pay you with a million worthless pieces of made-up bank paper if you want to withdraw your funds. You want cash.


#8

How will it manifest itself? Via the doctrine of shock, as Naomi Klein and others expound.


#9

Not saying anything new, but--the only way to handle "the banks" is with an iron hand. To my knowledge, FDR is the only one to have done it. I don't hold it against Obama for bailing them out in attempt to save us. Now, payback time is here. Sanders saying on air-break 'em up. The words bank holiday truly are music to my ears. Now, we absolutely, somehow, have to go for them, even if they bleed just a little (to their way of thinking a little is a lot with their mentality, coddled in particular by W Bush)
First: make them scream with the reinstatement of Glass Steagall. Then, onto cancellation of student loans for all but the upper tier in earnings. Now.


#10

"The banksters bought the government a long time ago and have consolidated their gains ever since."

This is a logical fallacy called affirming the consequent.

If p, then q; q; therefore, p.

If I am in Kansas, then I am in the US.
I am in the US.
Therefore, I am in Kansas. (The conclusion is false because I could be in any of the other 49 states.)

If the banksters bought the government, then things will happen that I don't like.
Things happen that I don't like.
Therefore, the banksters bought the government.


#11

Please read the Constitution. Only Congress legislates. If Dodd-Frank was changed, then Congress did it, not the president.

Congress voted to repeal Glass-Steagall and President Clinton signed the bill into law. Main street banks (not the Wall Street banksters) wanted Glass-Steagall repealed so they could invest heavily in the unregulated derivatives market and Congress and Clinton were only too happy to do what they wanted.

So long as a majority of the people in this nation are capitalists, they will be opposed to government regulation of the market because capitalism is predicated on the invisible hand of the market producing the best outcomes. Government regulations interfere with the invisible hand of the market.

You might think the banksters own the regulators, but are you aware that when Hank Paulson met with the CEO's of the big Wall Street banks and told them they had to accept TARP money whether they wanted it or not (the CEO of Wells Fargo told Paulson he didn't want the money), Paulson had Sheila Bair (head of the FDIC that regulates banks) in the meeting and told the banksters that if they didn't take the money, they would have to answer to Sheila; in other words, Paulson used the regulator of the banks as a club to get them to do what he wanted them to do?

The banksters are not villains who control the government; they are simply good capitalists who are acting out of rational self-interest. The Congress and the Supreme Court (it is they who decided corporations are people and have the same constitutional rights as you and I have) have been overwhelmingly composed of capitalists and have done what benefits capitalists in society.

Good luck overthrowing capitalism in the US. Russia and China had their revolutions, but they sure aren't Marxist, classless societies today.


#12

The banks and other entities knew what they were doing, and it was irrational to say the least. Also, there were only a few in congress who voted NOT to deregulate the banks in 1999; one is Bernie Sanders. Another is Ed Markey .


#13

The act that passed in 1999 is called Graham Leech Bliley. Most people do not even know that the banks were deregulated in 1999. Before that we had Glass Steagall which kept safeguards on the banking industry for decades ( since FDR). You'd think that the banks would want more regulation not less. Many small town banks did not fall for investing in bad loans and other entities, and they are still surviving. A bank should be like any other business. It has to be regulated, and to protect the clients.


#14

Although you are welcome to add distraction to the discussion, the article and posters are basing their analysis' not on deductive logic, but on history that most of us observed first hand.


#15

Although you are welcome distract the discussion, neither the article or posters advocate overthrowing capitalism or embracing Marxism. Regulating capitalism is not overthrowing capitalism.

Irrespective of what the constitution includes, those of us who weren't locked in a closet for the past 30 years watched the blow by blow as Bill Clinton zealously promoted the regressive legislation that he signed.

Its a good bet that most or all readers of this article are middle class. Prior to the New Deal providing minimal regulation of capitalism, workers did not have weekends and there was no middle class, and 37 years of New Deal destruction shakes the invisible hand that pushes more Americans out of the middle class and into poverty.


#16

pull all pension funds from Wall St.


#17

Yes, this is the next rung of "disaster capitalism". A little more abstract but it goes right to the heart of the matter. Take the cash, property will follow.


#18

The majority of people in the US are not capitalists; they are wage earners.


#20

Except this time, our nation's debt is over $18T and exceeds our GDP, we don't have another bailout for the bankers. Now would be the time to call for the reinstatement of Glass-Steagall ~ to separate the commercial banks from the investment banks, so they can no longer gamble with other people's money. Unfortunately, Wall Street has a majority of our politicians in their back pockets, so that sort of legislation seems unlikely ~ perhaps fixing the underlying problem of money corrupting our politics should be the initial focus.


#22

Goofar said:

Please read the Constitution. Only Congress legislates. If Dodd-Frank was changed, then Congress did it, not the president.

Congress voted to repeal Glass-Steagall and President Clinton signed the bill into law. Main street banks (not the Wall Street banksters) wanted Glass-Steagall repealed so they could invest heavily in the unregulated derivatives market and Congress and Clinton were only too happy to do what they wanted.

So long as a majority of the people in this nation are capitalists, they will be opposed to government regulation of the market because capitalism is predicated on the invisible hand of the market producing the best outcomes. Government regulations interfere with the invisible hand of the market...

TJ says:
Please read the Constitution. Only Congress can declare War.

Therefore, we haven't had a war since WWII. (Using your Mickey Mouse Logic)

Your simpleton's view of the world is completely out of touch with reality. For example, the TPP "free-trade" agreement being negotiated is not being written by Congress at all; it is a process done in secret by Banksters and CEO's on Wall Street who are demanding fast-track approval without any national debate. Many congressmen have complained that they don't have any idea what's in it, yet they are being pressured by their donors (wall street) to pass it without reading it.

This is not harmless democracy and capitalism, it is Racketeering. You are also wrong about "Main-Street" banks causing the meltdown. There weren't many mainstream banks left as over one-hundred have folded and hundreds more absorbed into Wall Street scams in the face of the undeclared Depression of the 2000's. For example, Brown Brothers Harriman, the world's largest private investment bank, rebranded itself a main-street bank to avail itself of the TARP bailout money, even though no US citizen has a checking account there.

With the exception of a few Credit Unions, most local banks are gone. This reckless gambling in derivatives started with Wall Street at Enron, bilking mainstreet out of its energy resources and leaving investors and employees victims of the Bush/CEO Kenneth Lay, Jeffrey Skilling, former President, COO, and CEO
Andrew Fastow and his circular logic "Raptor" fund scams.

But with you it's:
The speed limit is 65mph.
Therefore, no one has ever driven over 65mph.