I agree with Warren, but for entirely different reasons. The banks have become “too big to fail.” This is wrong. Banks are private institutions and should not have governments stepping in to bail them out. Usually when governments bail out the private sector, there are strings attached (look at General Motors). What I don’t like about the banks is that they have become casinos that use depositor’s money to gamble on highly risky projects. If they bet wrong, then the government steps in. The depositors lose their money and the managers walk away. (Look at Cyprus).
When I mention “banks,” I also mean investment banks. In earlier times, the investment banks were owned by the partners. They had skin in the game. When the investment banks went public, the partners got rich and just started gambling away with the investor’s money.
And don’t get me started on derivatives...
I agree with you 100%
“In earlier times, the investment banks were owned by the partners. They had skin in the game. When the investment banks went public, the partners got rich and just started gambling away with the investors money.”
That’s exactly right. They gambled their money and nobody else’s. If it went good, hooray, if it went south THEY suffered. Today, there’s no risk. It’s like sending me to the craps table with your bankroll. If I win, hooray, if I lose, you’re screwed not me.
CB, you are absolutely right. The TBTF banks should be broken up until they aren’t TBTF. Running a TBTF bank is a license to steal.
Back when repeal of Glass-Steagall was being debated, William Safire understood the problem. "Don't Bank on It" (New York Times, Apr 16, 1998), "Running Huge Risks" (New York Times, Nov 1, 1999)
In 2016 the Republicans should nominate a presidential candidate who will run against crony capitalism. Not a candidate the media can fit right in to the Democrats' narrative of Republicans as robber barons.
I agree. A lot of folks here are so quick to attack anything a liberal says they don’t even stop to think whether there is any truth to it. There seldom is, but every now and then a blind squirrel finds a nut.
“Too big to fail” is too big.
But likely whatever bill she introduces on the subject will look as much like the original Glass-Steagal act as Rubio's current immigration stance looks like the one he had before he was elected.
Bingo! I’m a little surprised it took more than 10 posts for this.
I concur and would further point out the outright corruption that exists. Politicians and government executives make rulings favorable to the big boys. Many of them leave government and take big time jobs with huge bonuses with the same companies. Rinse and repeat.
The executives reap the profits and the taxpayers eat the losses. It’s the most profitable crime going and it’s perfectly legal thanks to our criminal politicians.
I bet 98% of Americans are not even aware that a large part of the housing crisis was caused by cooking the books to obtain outrageous bonuses. I bet 98% of Americans would be ticked off if they knew that no effort was ever made to prosecute those responsible or recover the criminally obtained money despite the fact that taxpayers had to bail out these companies due in part to the fraud committed by the executives. I bet 99% of Americans are not aware that many of the key players in this crime were Clinton administration politicians.
Our nation is ignorant to the injustice that allows the banksters, unions, and politicians to rob future generations.