Posted on 05/11/2015 4:59:13 PM PDT by Kartographer
“The top six bank holding companies are considerably larger than before, and are still permitted to borrow excessively relative to the assets they hold,” the report states. “They are dangerously interconnected and remain vulnerable to sudden runs, because they borrow billions of dollars from wholesale lenders who can often demand their cash back each and every day.”
It goes on: “Banks can still use taxpayer-backed insured deposits to engage in high-risk derivative transactions here and overseas. Compensation incentives fail to discourage mismanagement and illegality, given that when legal fees, settlements, and fines mount, it is usually the shareholders, not the corporate executives who pay.”
And, the report warns, “[s]hould one of these giant banking firms fail again, it appears that the damage will not be contained.”
“Avoiding another meltdown depends on the will of federal regulators to use the new powers they were granted in the Dodd-Frank Wall Street Reform and Consumer Protection Act,” said Jennifer Taub, author of the report and professor of law at Vermont Law School. “If they behave as if they are beholden to the banks, we will likely face a more severe crisis in the future.”
(Excerpt) Read more at shtfplan.com ...
Thank you very much for your perspective and info.
“We was robbed.”
Who was robbed? Of what?
All $$ given to any banks (some were forced to take it); has been repaid with interest.
Well, it can happen. The issue is when you can no longer hide the dirt (debt) under the rug, because through seeping through the rug or pouring out the sides, it is now so readily visible that the dirt under the rug is beyond deniability. the question is when.
“wholesale lenders who can often demand their cash back each and every day.”
Not to disparage an anti banking thread, but overnight lending is a standard, not an abnormality. What they amount to are mini-fines self imposed for not carrying sufficient cash on hand, as the biggest #1 overnight lender is the Federal Reserve. — unsourced.
You have the same theory as my hubby.
The Gold story has been put on hold, until a few other things happen.
Massive Deflation = Gold down.
Massive unemployment = Gold down.
Massive US Dollar investments = Gold down.
The US Dollar up trend is here. Finally, I’ve been predicting it since 2008.
It’s deflation and deflation is a Bit*h.
Carp all you want about “Fiat” currencies etc, and I’ll agree. The Gold bugs of the 1980’s and 90’s have exercised this line over and over again.
Gold is arbitrary.
It has no real value other than some “perceived” historical value.
Oil is the currency of Nation states.
Oil is life.
Oil sustains life.
Gold is a side show.
The big banks are “too big to succeed”!
I’m just jealous because I didn’t get bailed out.
Bags of junk silver coins (silver dimes and quarters) are good to add to prep supplies.
Gold is a side show because it hasn't been widely held in 80 years; FDR saw to that.
When the dollar is inflated or deflated to worthlessness, men will need a demarcation of value.
Who knows, some people might even desperately try to trade bottle caps
.
Yep - print more “free” money and let them borrow until they burst - literally.
While I agree with the conclusion that oil is life and the most important commodity traded today, gold does serve a purpose. Its very scarcity, nearly indestructible composition, and potential portability make it an excellent store of value and medium of exchange.
The major problem with fiat currency is that it does not put any brakes on the banker’s prime directive: Thou shat have more assets (loans out and interest receivable) than liabilities (other people’s money held on deposit). When currency is just electrons that our politicians tell us matters, there are no brakes on the system and you can go 18 Trillion into debt.
It would not be incorrect to draw parallels between today and the tulip mania.
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