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Debunking the "Too Big To Fail" Myth
As MIT economics professor and former IMF chief economist Simon Johnson points out today, the official White House position is that:
(1) The government created the mega-giants, and they are not the product of free market competition
(2)
The White House needs to "regulate and oversee them", even though it is
clear that the government has no real plans to regulate or oversee the
banking behemoths
(3) Giant banks are good for the economy.
That is an epic fail. Giant banks are not good for the economy.
Note to congressional aides: Your bosses could score big points by pointing out that the too big to fail justifications are a (cough) lie.
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Too Big To Fail poses a clear and present danger to the national security interests of the United States of America.
George Washington you've had some fantastic posts about some of the most pressing issues of the day. As we say in the South: keep pimpin, pimpin.
Also George Washington cemented his place as father of this country when he voluntarily ceded power. Today the concept of voluntarily ceeding power is considered either folly or just outright stupid, hang on until you die or get the boot is the way. But anyhow I'm glad you chose Washington as your pen name because its a fine example to aspire to.
Interesting to see what you get for a too big to fail
JP Morgan
http://www.reuters.com/finance/stocks/incomeStatement?stmtType=BAL&perTy...
156 billion usd equities
2 trillion usd assets
85 trillion usd derivatives
and around 3 billion usd profit for this quarterm
Ft alphaville
[Investment Banking] Net income was $1.9 billion, an increase of $1.0 billion from the third quarter of 2008. These results included the negative impact of the tightening of the firm’s credit spread, offset by the positive impact of counterparty spread tightening and gains on legacy leveraged lending and mortgage-related
Audit this bank it is worth it!
Giant banks are good as a one-stop-shop for campaign funding. Given that most political representatives appear to represent nothing but their own personal interests, too big to fail will probably remain around until the whole mess fails (i.e. next Thursday).
These very same banks fund the politicians that would like nothing more than to take away our Second Amendment rights. This shit has to stop.
"This country, with its institutions, belongs to the people who inhabit it. Whenever they shall grow weary of the existing government, they can excercise their constitutional right of amending it, or exercise their revolutionary right to overthrow it."
- Abraham Lincoln
Interesting Lincoln quote; why did he choose to invade a sovereign nation composed of former states of the U.S. that chose to do exactly that? I suppose that could be the topic for another day, or certainly for another forum. An inconsistency from a politician? Imagine!
I prefer Patrick Henry, who argued unsuccessfully against Virginia's entry into the "Union"; history, with the aid of Lincoln, proved him correct:
Is it necessary for your liberty that you should abandon those great rights by the adoption of this system? Is the relinquishment of the trial by jury and the liberty of the press necessary for your liberty? Will the abandonment of your most sacred rights tend to the security of your liberty? Liberty, the greatest of all earthly blessing — give us that precious jewel, and you may take every thing else! But I am fearful I have lived long enough to become an old-fashioned fellow. Perhaps an invincible attachment to the dearest rights of man may, in these refined, enlightened days, be deemed old-fashioned; if so, I am contented to be so. I say, the time has been when every pulse of my heart beat for American liberty, and which, I believe, had a counterpart in the breast of every true American; but suspicions have gone forth — suspicions of my integrity — publicly reported that my professions are not real. Twenty-three years ago was I supposed a traitor to my country? I was then said to be the bane of sedition, because I supported the rights of my country. I may be thought suspicious when I say our privileges and rights are in danger. But, sir, a number of the people of this country are weak enough to think these things are too true. I am happy to find that the gentleman on the other side declares they are groundless. But, sir, suspicion is a virtue as long as its object is the preservation of the public good, and as long as it stays within proper bounds: should it fall on me, I am contented: conscious rectitude is a powerful consolation. I trust there are many who think my professions for the public good to be real. Let your suspicion look to both sides. There are many on the other side, who possibly may have been persuaded to the necessity of these measures, which I conceive to be dangerous to your liberty. Guard with jealous attention the public liberty. Suspect every one who approaches that jewel. Unfortunately, nothing will preserve it but downright force. Whenever you give up that force, you are inevitably ruined.
I'll put my bet on "overthrow".
Worth watching or reading the transcript:
http://www.pyrabang.com/view.php?ref=THX1138&post_id=41990
ASTONISHING THAT ANYONE EVEN WONDERS...WE ARE GETTING ROBBED AND THIS HAS BEEN GOING ON AS PART OF THE PLAYBOOK ACTION FOR THE PRIVATELY HELD FEDERAL RESERVE CORPORATION.
Read "The Creature from Jekyll Island" and you will see, BAILOUT, is just the "conspiracy of the banking cartel" to pass on the losses to the US people, while they keep the benefits of their recklessness.
People all over America (and the world) know the truth here, but the big groupthink media supports the idea that we have to have a polite discussion as our country's financial house is at the end point melt down! And along with the media, we have a puppet government for the interests of the privately held federal reserve and their banking cartel, the whole notion of doing anything about this process of legislating criminality will never end unless WE THE PEOPLE insist with our one last power--OUR VOTE AND OUR UNDERSTANDING OF THE CORRUPT SYSTEM, AND INSISTING THAT WE ALL HAVE TO BE VIGILANT WATCHDOGS FOREVERMORE, AMEN.
It is a good idea to buy gifts of RON PAUL's book END THE FED, with THE CREATURE FROM JEKYLL ISLAND, for anyone you think will take the time to care and then write their legislators to insist that they support HR1207, and S604...below is a link to a site where you can put in your zip code and see if your legislators are supporting this...i suggest you also check to see if they voted for TARP. We need to REVOKE TARP and this is the next bill that needs to be put forth, so, hopefully, someone out there reading this is in a position to write the bill and work on getting support for it...
Here is the link...just put in your zip code to see where your (possibly non-representing) elected officials stand on HR1207 or S604. If they voted for TARP and arent’ ALREADY supporting the AUDIT THE FED legislation, make sure you vote them OUT OF OFFICE ASAP…
http://www.ronpaul.com/2009-07-21/ron-paul-ask-your-senators-to-support-audit-the-fed-bill-s-604/
AND I have completely reconsidered my complaints about Simon Johnson not being aggressive enough--for a man to go up against the EVIL GOLIATH that is our banking cartel, we could rightly call him David! If the Nobel foundation makes a selection of integrity, it would be to offer Simon a prize for his tireless efforts, to bring honesty and justice back to our government, and to rid it of it's ENTRENCHED CORRUPTION--a financial/government complex with the private federal reserve orchestrating every possible way to extract value from the US citizens...THANK YOU SIMON!
100% agree Agrotera, am so with you. It is beyond infuriating to watch what is happening to this country, for the sake of a minority elite that just can't take a loss. I make a bad bet and lose several hundreds or thousands, tough luck. I start a company and things go south and I lose everything, sorry that's how the world works, live and learn. But if I am privileged and lucky and savvy enough to work my way into a position of responsibility at a major financial institution, and because of my and my distinguished colleagues' collective ineptitude make imprudent decisions resulting in losses too big for most people to fathom, then it's okay! No problem! Then I get forgiven and rewarded and I write a book about it all!
All that being said, what is the average Joe (talking about myself here) who works 8-10 hours a day, is not wealthy, and barely has the time to even read this blog or the financial literacy and background to comprehend it, to do? I feel so utterly powerless. Certainly don't have the time to make any phone calls to politicians even if I knew how to express my fury and disappointment as eloquently as Tyler and some others here do. All I have is one vote. Give me someone or some party that has "let the failed fail" as their motto and I would gladly cast 10,000 votes for them if I could split myself into 10,000 persons. I would make time to attend local meetings and rallies held by said party, and would gladly donate a portion of what little I make to their cause. Yet I look around and all I see is the same old two-party system and the same old politicians who don't care about anything except doing whatever it takes to garner the needed votes to keep themselves in power through the next election. Precious few even understand enough to know what is going on. 80%-90% of my coworkers barely even understand what a 401k or a stock or bond is!
I want real change, I want a president who has the balls to stand up for truth and justice regardless of what his or her skin color is, I want it so badly I really don't know how to express it adequately in words. But what can I and the minority few Americans who feel the same as I do, do?
Excellent agrotera; amen! I have been communicating with my reps. This mission must be known to the common folk for it to be stopped. Moms are you listening?
THANK YOU LIONHEAD!
I emailed, called and faxed Barney and Chris and everyone on their committees, detailing and begging for their reconsideration of the TARP and all other heists that were going down last fall--that is like asking the fox to guard the hen house, no matter how much pleading, they work for the private federal reserve and this powerful GOLIATH buys the elections and pays for legalizing their criminal activities...if your reps are actively against this, by their actions, good and they are in the minority--we have to get one term Senators, and two term Reps...if anyone wants to help the public after that, there are other ways... WE NEED TO REVOKE TARP AND CALL BACK THE MONEY, AND LET THE FAILED ENTITIES FAIL, AND PUT IN JAIL THOSE WHO PERPETRATED THE CRIMES--SARBANNES OXLEY WOULD SIMPLY PUT ALL THE TOP EXECS IN THE HOPPER BECAUSE THEY SIGNED OFF ON A BUNCH OF LIES.
We need to REVOKE TARP
Absolutely, claw back the money, dump the banks on their own sorry asses. And then we need to audit the Fed, arrest the officers for fraud, and then move on to the IMF.
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