Legislators consider creating state bank (Washington State)

KOMOnews.com ^ | Jan 16, 2012 | JORDAN SCHRADER

[Baynative]

OLYMPIA, Wash. (AP) - State government stores money at Bank of America, buys goods with U.S. Bank cards, and distributes welfare aid through JP Morgan Chase ATMs.

Supporters of cutting such ties to big banks say the first step is creating the state's own bank.

The idea of a state bank - a favorite of the Occupy movement that sees it as an alternative to Wall Street - has strong support among the Democrats who control the state House. Speaker Frank Chopp called it a top priority last week in a speech opening this year's session of the Legislature.

[Baynative]

"I think people see this as a form of empowerment, that we're going to try to do something in our state to regain control over the safety of our finances," said David Spring, a community-college instructor from North Bend who has spoken at Occupy rallies. Skeptics wonder where the money would come from to accomplish the bank's goals, such as making low-interest loans to college students and to local governments for public works.

[Baynative]

WA Ping

Isn't it comforting to see comments from a community college instructor to help our brilliant legislators with their decision making?

[piytar]

Yeah, because governments are SO good at taking care of other people’s money. /SARC

The stupidity is astounding...

[donozark]

Maybe the United Nations could do a better job? After all, look at the bang up job they did in Haiti! /s

[Freedom4US]

The only one that I’m aware of is chartered in North Dakota.

Ironically it was borne out an essentially identical debacle, namely the collapse of the banking system in the 1930s.

[dila813]

They are in for a shock when they figure out that a loan bank is useless, only be partnering with other banks can this be of any meaning.

For instance, I don’t see Office Depot accepting the State of Washington Credit Card anytime soon.

[donozark]

Thanks! Was not even aware Bank of North Dakota was owned by the State.

[umgud]

Will they buy derivitives?

[Iron Munro]

You think the tellers at Bank Of America are surly and obnoxious?

Wait until they are replaced by government emloyees who couldn’t make the grade at the Dept. Of Motor Vehicles.

[Baynative]

Judging from the way liberals think and our governor has done business in the two terms: they probably think that they can create a new bank bureaucracy that will employ hundreds, if not thousands, of new government employees before it gets top heavy and capsizes at which time the process of “THE FIX” will go on for years and years.

[castlebrew]

Golly, what could possibly go wrong?

This from a State that turned a $3-billion pre-election surplus into a $9-billion post-election deficit, in about 6 weeks...f’n morons.

Time to separate the Puget Sound nutfarm from the remainder of the State!

[null and void]

A bank that will never run out of money as long as a single Washington state taxpayer can still draw a breath?

Might not be a bad investment...

[Psycho_Bunny]

Liberal Fantasy: “I think people see this as a form of empowerment, that we’re going to try to do something in our state to regain control over the safety of our finances,”

Liberal Reality: Washington State: FY13 Projected Shortfall - $3.5 billion. Percent of FY12 Budget - 22.2%

[SkyDancer]

Well they do have the senate bank to use as a role model. Oh, wait ......

[americanophile]

Hey it worked great for the Soviets, maybe they can call it ',Wasbank.'

[SatinDoll]

And we just got rid of state run liquor stores, too.

[castlebrew]

Golly, what could possibly go wrong?

This from a State that turned a $3-billion pre-election surplus into a $9-billion post-election deficit, in about 6 weeks...f’n morons.

Time to separate the Puget Sound nutfarm from the remainder of the State!

[Ramius]

Isn’t there a (state) Constitutional problem here? I forget the exact verbage, but there’s something in there about not lending the credit of the State.

Seems to be a more or less direct violation, to me.

[schu]

One can only surmise the purpose of a state bank. Could it be to “lend” the state money from leveraged deposits * 80 like MF Global? Then the state will never have to balance the budget, they can act like the Feds and just borrow away their financial folly.

Of course those sharks on Wall Street will gladly get the politicians hooked on the free money .. then when payment comes due they will own it all. Just like a crack dealer, and the state is the most witless addict that can be found.

schu

[max americana]

“And we just got rid of state run liquor stores, too.”

I’ve been driving to WA state from BC since I was in high school to load up on booze, eggs and milk as BC taxed us to death. Until last Christmas, BC liquor stores are still run by the idiot govt. A 6-pack of beer runs you $9 Canadian.