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Legislators consider creating state bank (Washington State)
KOMOnews.com ^ | Jan 16, 2012 | JORDAN SCHRADER

Posted on 01/16/2012 5:46:45 PM PST by 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.

(Excerpt) Read more at komonews.com ...


TOPICS: Breaking News; Government; News/Current Events; Politics/Elections; US: Washington
KEYWORDS: bank; washington
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"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.
1 posted on 01/16/2012 5:46:56 PM PST by Baynative
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To: Just Lori; Libertina; Lexinom; horatio; freebird5850; Horatio Gates; Ramius; HairOfTheDog; ...
WA Ping

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

2 posted on 01/16/2012 5:49:25 PM PST by Baynative (The penalty for not participating in politics is you will be governed by your inferiors.)
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To: Baynative

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

The stupidity is astounding...


3 posted on 01/16/2012 5:50:13 PM PST by piytar (The Obama Depression. Say it early, say it often. Why? Because it's TRUE.)
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To: piytar

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


4 posted on 01/16/2012 5:55:15 PM PST by donozark (Ron Paul! You magnificent bastard! I read your book! (cook book that is))
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To: piytar

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.


5 posted on 01/16/2012 5:55:15 PM PST by Freedom4US
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To: Baynative

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.


6 posted on 01/16/2012 5:55:32 PM PST by dila813
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To: Freedom4US

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


7 posted on 01/16/2012 5:58:03 PM PST by donozark (Ron Paul! You magnificent bastard! I read your book! (cook book that is))
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To: Baynative

Will they buy derivitives?


8 posted on 01/16/2012 5:59:21 PM PST by umgud (No Rats, No Rino's)
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To: Baynative

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.


9 posted on 01/16/2012 5:59:57 PM PST by Iron Munro ("Don't pick a fight with an old man. If he is too old to fight he'll just kill you." John Steinbeck)
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To: dila813

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.


10 posted on 01/16/2012 6:01:12 PM PST by Baynative (The penalty for not participating in politics is you will be governed by your inferiors.)
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To: Baynative

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!


11 posted on 01/16/2012 6:01:57 PM PST by castlebrew (Gun control means hitting where you're aiming!)
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To: Baynative

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...


12 posted on 01/16/2012 6:03:50 PM PST by null and void (Day 1091 of America's ObamaVacation from reality [Heroes aren't made, Frank, they're cornered...])
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To: Baynative

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%


13 posted on 01/16/2012 6:04:41 PM PST by Psycho_Bunny
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To: Baynative

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


14 posted on 01/16/2012 6:09:21 PM PST by SkyDancer ("If You Want To Learn To Love Better, You Should Start With A Friend Who You Hate")
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To: Baynative
Hey it worked great for the Soviets, maybe they can call it ',Wasbank.'
15 posted on 01/16/2012 6:11:09 PM PST by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: Baynative

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


16 posted on 01/16/2012 6:12:04 PM PST by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
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To: Baynative

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!


17 posted on 01/16/2012 6:12:04 PM PST by castlebrew (Gun control means hitting where you're aiming!)
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To: Baynative

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.


18 posted on 01/16/2012 6:20:46 PM PST by Ramius (Personally, I'd give us one chance in three. More tea anyone?)
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To: Baynative
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

19 posted on 01/16/2012 6:26:14 PM PST by schu
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To: SatinDoll

“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.


20 posted on 01/16/2012 6:31:31 PM PST by max americana (Obama is a POS)
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To: Freedom4US

Actually the Bank of North Dakota was formed after WWI.


21 posted on 01/16/2012 6:32:25 PM PST by Maine Mariner
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To: Baynative

This will only “work” if they can print their own or force deposits to the bank.


22 posted on 01/16/2012 6:39:10 PM PST by SlargTarg
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23 posted on 01/16/2012 6:46:23 PM PST by deoetdoctrinae (Gun-Free zones are playgrounds for felons)
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To: max americana

“A 6-pack of beer runs you $9 Canadian.”

Take off! No wonder the MacKenzie brothers were trying to scam free beer from the Elsinore Brewery, eh?


24 posted on 01/16/2012 6:51:09 PM PST by Avid Coug
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To: Baynative
Having State Banks counters/diffuses/balances the national corruption and central cronyism intrinsic to having National Bank or the Fed. And some Tea Party conservatives do support the concept for that reason, eg.
The Save America Foundation (SAF), a not for profit organization, is intent on seeing the U.S. Constitution upheld by our elected officials. ...

The Constitution of the United States was created to be the bedrock of the nation and to lay out our rights as citizens. As America’s most important document it provided the framework for our government and the means through which the people could keep the government in check. But what happens if the government institutes laws that are inconsistent with the Constitution, such as the passage of the recent Health Care bill, HR 3200?

...

State Bank Initiative

Remove the power of the Federal Reserve System by establishing independent state banks in at least 20 states during calendar year 2012.

Source: http://www.saveamericafoundation.com/initiatives/state-bank-initiative/ and the linked "About Us" page


25 posted on 01/16/2012 6:52:36 PM PST by bvw
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To: schu

Above just a side comment.

To the point you made:

Better many corruptions than a few!

26 posted on 01/16/2012 7:01:15 PM PST by bvw
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To: Baynative

Look at Freddie and Fannie for how great government banks work! LOL Leftists are total idiots and liars.

Politicans controlling banks...what a stupid idea given what they are now seeing in Washington, DC! They will rob the State blind like Freddie and Fannie have done to the Federal Treasury.


27 posted on 01/16/2012 7:09:35 PM PST by SaraJohnson
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To: Baynative

Scratch that low interest student loans. The federal government has a monopoly on that scam!


28 posted on 01/16/2012 7:43:32 PM PST by RetiredTexasVet (There's a pill for just about everything ... except stupid!)
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To: Baynative

Prior to 1925, Texas had more state chartered banks than national banks. Most of them went bust during the depression, just like the other banks did.

A state run bank would be like the fox guarding the hen house.


29 posted on 01/16/2012 7:46:09 PM PST by smokingfrog ( sleep with one eye open (<o> - - -)
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To: Baynative
Skeptics wonder where the money would come from

DUH.....from the bank! /s

If the bank runs out, they can just take the money from the evil rich.

30 posted on 01/16/2012 8:04:00 PM PST by Repeat Offender (While the wicked stand confounded, call me with Thy Saints surrounded)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks Baynative.


31 posted on 01/16/2012 8:17:18 PM PST by SunkenCiv (FReep this FReepathon!)
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To: Repeat Offender
DUH.....from the bank! /s If the bank runs out, they can just take the money from the evil rich.

Agreed. The bank owner should put up all capital, not the taxpayers. If the shareholders of failed banks were rich then they should become poor. That's capitalism.

Instead our Congress and Federal Reserve takes care of them and screws us.

32 posted on 01/16/2012 8:34:07 PM PST by apoliticalone (Honest govt. that operates in the interest of US sovereignty and the people, not global $$$)
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To: dila813
For instance, I don’t see Office Depot accepting the State of Washington Credit Card anytime soon.

But wouldn't that be a better bet than a Citi-Group credit card? I like the idea of state banks and eliminating the TBTF banks that have sucked taxpayers dry.

33 posted on 01/16/2012 8:39:04 PM PST by apoliticalone (Honest govt. that operates in the interest of US sovereignty and the people, not global $$$)
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To: Baynative

Will they receive and give out gold as a commodity?


34 posted on 01/16/2012 8:43:27 PM PST by vox_freedom (America is being tested as never before in its history. May God help us.)
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To: apoliticalone

Citi-Group credit card doesn’t exist, it is Visa or Master Card.

You can create your own name on a card, but it is still Visa or a similar card that has negotiated with the vendors country wide to accept their cards.

The only thing garnered by your Citi card is the card holder agreement.


35 posted on 01/16/2012 9:04:39 PM PST by dila813
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To: piytar

Well, if a state bank is run like the one in North Dakota, we’d have no excitement and breathless announcements of impending bank failures on financial news channels.

The Bank of North Dakota has a Tier-1 risk-based capital ratio of over 18%.

The requirement is for 10%.

In other words, the BND is being run very conservatively, rather unlike a lot of private-sector banks.


36 posted on 01/16/2012 9:34:48 PM PST by NVDave
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To: piytar

Oh, and their non-performing loan assets as a percentage of all assets are about, oh, less than half of what many private sector banks are running these days.


37 posted on 01/16/2012 9:36:24 PM PST by NVDave
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To: Baynative; RainMan

With all our crooked Dem politicians, they’d rob the bank empty the first day. When they’re losing an election, it’s amazing how they can always “find” suspicious boxes of ballots (always just enough to put the Democrat candidate over the top). With these same people as bankers, money in the state bank would magically disappear just like those ballots always just magically appear.


38 posted on 01/16/2012 9:38:49 PM PST by holyscroller ( Without God, America is one nation under)
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To: schu

Actually, the Bank of North Dakota was set up to give the state better ability to shield their industries (in particular, wheat farming) from the predations of Wall Street bankers before the Fed came into being and from the Minneapolis commodities exchanges and markets.


39 posted on 01/16/2012 9:41:29 PM PST by NVDave
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To: NVDave

According to the 2010 Census, the racial and ethnic composition of North Dakota was as follows:
White: 90.0%
Native American: 5.4%
Hispanic or Latino (of any ethnic groups): 2.0%
Black or African American: 1.2%
Asian: 1.0%
Pacific Islander: 0.1%
Some other ethnic groups: 0.5%
Two or more ethnic groups: -0.2%

I report. You decide.


40 posted on 01/16/2012 9:43:50 PM PST by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: NVDave

To which all I can say is Washington (state)’s government is a far cry from North Dakota’s...


41 posted on 01/16/2012 9:57:21 PM PST by piytar (The Obama Depression. Say it early, say it often. Why? Because it's TRUE.)
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To: bvw

“Better many corruptions than a few!”

GREAT point!!!


42 posted on 01/16/2012 10:03:55 PM PST by piytar (The Obama Depression. Say it early, say it often. Why? Because it's TRUE.)
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To: dfwgator

Well, I was going to say something incendiary, but decided against it.

Buuuuut... seeing as how you brought it up, allow me to observe the following:

1. ND spends less per pupil in it’s schools and achieves a higher educational outcome than states that spend almost twice per pupil what ND does. Washington DC would be an excellent example of a school system that wishes they could achieve what ND’s schools do... even if they held spending constant.

2. I fully believe that you could hand the BND to states which are run by minority agitation groups (eg, California, NY, NJ, et al) and the bank would be belly up in less than three years.

The hard truth of the matter is this: In money, as in things such as the rights enumerated by the Bill of Rights, the capacity required for the proper exercise and restraint utterly escapes many minority groups for the majority of their members. They “don’t get it” and they likely never will “get it.”

All I’m saying is this: A state bank isn’t a wholly goofy idea. There is one, it came about as a result of problems rather similar to what we see today, and their track record during the Depression shows that such a bank can serve as a very important counter-balance to private sector banks run by rather silly people.


43 posted on 01/16/2012 10:09:32 PM PST by NVDave
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To: NVDave

Socialists always love to point out Israeli Kibbutzes as an effective example of socialism in action........yes, socialism has the possibility of working in a homogenous group, as long as everyone is on the same page. That is an impossibility in a country like ours.....ND is about as homogenous as it gets in this country.


44 posted on 01/16/2012 10:13:35 PM PST by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: dfwgator

It isn’t just the homogeneity that allows ND to function as it does. It also goes to the climate.

ND has some of the hardest winters in the lower 48. My observation is that the states with “real winters” tend to have a lot fewer deadbeats and layabouts than the warm weather states.


45 posted on 01/16/2012 10:30:25 PM PST by NVDave
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To: NVDave

In other words, it is a unique situation, with all of the losers in Seattle, this idea is doomed to failure.


46 posted on 01/16/2012 10:34:47 PM PST by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: dfwgator

Well, I don’t know how many losers there are in Seattle. I know WA’s finances aren’t great, but they’re nowhere near as bad as CA, IL, NY, NJ, RI, et al.

Of course, they’re nowhere near as good as ND, SD, WY, MT, AK, et al. I don’t think ND’s situation is unique. They’re one of several well-run states. They’re the only state which has a state bank, but they’re not the only well-run state in the US.

In my purchases of muni debt, there are three groups of states:

1. States in which I prefer buying issues when they come out.
2. States where I carefully examine individual issues that might come out - usually on a county-by-county level.
3. States which I won’t touch with a barge pole. CA, IL, NY, et al.

WA is in group 2 for me.

ND is in group 1.


47 posted on 01/16/2012 10:44:41 PM PST by NVDave
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To: castlebrew; Just Lori; Libertina; Lexinom; horatio; freebird5850; Horatio Gates; Ramius; ...
WA Ping


,p> "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 nut farm from the remainder of the State!"

The democrat party and it's media are a conglomeration of incredible propaganda, corruption and incompetence. The governor says anything that sounds good at the moment and the media will give it as much air and print as it takes to make it true.

The point you made about the huge surplus she crowed about in the closing weeks of her last campaign is a good example.
A separate Puget Sound region would be a great idea to give the rest of the state a chance at civil liberty.

48 posted on 01/17/2012 7:14:11 AM PST by Baynative (The penalty for not participating in politics is you will be governed by your inferiors.)
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To: lonevoice

ping


49 posted on 01/17/2012 8:37:16 AM PST by Pride in the USA
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*


50 posted on 01/17/2012 2:29:17 PM PST by TornadoAlley3 (Obama is everything Oklahoma is not.)
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