If We Don't Break Up the Giant Banks NOW, They'll Be Bailed Out Again and Again ... Dragging the World Economy Down With Them

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Wed, 07/13/2011 - 16:27 | 1453428 PulauHantu29
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Why doesn't the Fed Bail out ALL banks equally instead of just the five Big Ones? Doesn't seem Fair, does it?

Wed, 07/13/2011 - 15:47 | 1453246 Sparrowhawk
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Are any of the big banks marking any of their real estate assets to market?  My boss is under the impression that regulators have been in and they are doing it, but I haven't gotten this impression.

Wed, 07/13/2011 - 15:45 | 1453237 ddtuttle
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Indeed, our founding father's were the victims of the European banks.  Europe was vastly richer and more powerful than the USA of 1800.  However, the writing was on the wall: the USA would become a hugely successful and powerful country over time.  Its size dictated that it might be come more powerful than Europe itself.  

Europe, therefore, unleashed their bankers on the USA to mitigate the damage to their own power and wealth.  This is how our founding father experienced firsthand how the tactic of domination by debt worked.  Had it not been for WW I & WW II, where our geographic isolation was a tremendous advantage, Europe might still have the upper hand.

Today the big banks are international corporations: that is they have no loyalty to any one country, and will try dominate anyone and everyone with debt.  Because of this shared impetus they are content to divide the spoils of the world among themselves.  They know that they are vulnerable to legal and political action, so they will pay any amount to secure protection.

History is replete with tales of bankers gone wild, taking down whole countries. But this time IS different, in that the credit crisis is global and systemic.  Add the gun-to-their-own-head derivatives, and it is all but certain they will take the whole world down with them.


Wed, 07/13/2011 - 16:49 | 1453531 iDealMeat
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+1, wean yourself off. sooner, not later..

Wed, 07/13/2011 - 16:25 | 1453418 AnAnonymous
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What a lot of hogwash.  Europe unleashing their bankers on the US... What a rewriting, uninspired and all...


The current situation is the result of expansionism and the fact that expansionism is hitting the physical limits of this world.

Bankers are part of expansionism as their credit allows faster expansion which should be repaid by the new captured area. Has been like that for ages, fiat or gold based currency, it does not matter, always ends the same.

And the US has been an expansionist power since its inception.

Wed, 07/13/2011 - 15:53 | 1453275 DaveyJones
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well said

Wed, 07/13/2011 - 15:39 | 1453221 Van Halen
Van Halen's picture

How about we lop off some bankers' heads while we're at it?

Wed, 07/13/2011 - 15:36 | 1453206 bubba1231
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YEs and Osama didn't have anything to do with 9/11 right GW?  Banks had little to do with the meltdown.  It was caused by the greed of the American public, the FEderal Reserve and barney Frank and his ilk in Congress.  As for the future meltdown - the only way to avoid it is to RATION healthcare to anyone above 70.

And you are stilla  traitor to your country GW.

Wed, 07/13/2011 - 15:34 | 1453192 Sam Shadow
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Break up!? Let them fail. Capitalism.

Wed, 07/13/2011 - 15:20 | 1453130 JW n FL
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at the 5 minute mark.. is when the description of America’s Voting Habits is described accurately.


George you will like this.

Wed, 07/13/2011 - 15:05 | 1453062 bankruptcylawyer
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The SIZE of the giant banks isn't hurting anything but themselves. it is the INFLUENCE of banks on government that is hurting the economy. essentially , the way our government operates is hurting the economy, not the 'size' of the banks. the government offers preferential treatment to larger institutitons, at the expense of the greater good, and this is what is hurting businesses, savers, consumers, and anyone who isn't above 3 standard deviations of wealth above the mean of savings---or a government employee.

Wed, 07/13/2011 - 14:54 | 1453012 TheMerryPrankster
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It all begins with the Federal Reserve. That is the well spring, the factory that makes the chains of debt that bind us to this fiscal slavery.

First we cut off the head and then we slay the smaller dragons no longer protected by their omnipotent master.

Too big too fail begins at the Federal Reserve, it is there we must focus our attention and energies. Andrew Jackson killed one central bank, it can be done with sufficient will and effort.

Wed, 07/13/2011 - 15:11 | 1453088 anony
anony's picture

Wish it were true that we could do another Jackson.  But if memory serves, the Central Bank back then went after Martin Van Buren, his successor with a vengeance and tanked the economy immediately out of revenge for what turned out to be Jackson's pyrhhic victory.

We make a serious mistake thinking "Government" is the Power and that we can do something about it.  Even more now than ever, we have had it shoved in our faces that the real power has been sold by government officials to the Hedgies, Investment Banks, and the rest of the financial mavens. They are the Power and stronger now than they were in 2008.

Our votes are impotent.  Only a great deal of blood shed by those in the money spheres will offer even a tiny chance of returning to a people's government. 

TheBamster and his puppet AG, Eric Holder, are simply dupes for the Banksters and wouldn't hear of it.

Wed, 07/13/2011 - 15:23 | 1453144 TheMerryPrankster
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Voting is political masturbation, it accomplishes nothing and doesn't even feel good for that long.

Real change will either occur by high level intrigue involving several very wealthy people who won't fear losing their wealth or power by kicking the legs out from under things, or a shit load of angry people who find themselves backed into a corner.

Voting was never an option. Politicians are not agents of change they are agents of the status quo. They are the wrong tool for the job.


Wed, 07/13/2011 - 16:20 | 1453394 RockyRacoon
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Ambrose Bierce:

 VOTE, n. The instrument and symbol of a freeman's power to make a fool of himself and a wreck of his country.

Wed, 07/13/2011 - 14:51 | 1452996 Westcoastliberal
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What we need right now is a worldwide Jubilee as in days of old.  We citizens have the power to do this and it would work wonders even if we only had a 50% participation rate.  I'm undecided though on the bumper sticker.  Should it be "Just stop paying" (like Nancy Reagan's super-effective "Just say no"), or should we take another tact and make it "Ropes not votes"?

Seriously, I'm sure if any of us really tried to organize a jubilee movement a heart attack in a hot tub would be the result, courtesy of the TBTF.

Wed, 07/13/2011 - 14:45 | 1452970 janchup
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Better said: Over Tim Geithner's dead body. After all, if the big banks were broken up perhaps his crucial and central role in the debacle of 2008 might receive attention.

Wed, 07/13/2011 - 14:44 | 1452967 Lord Peter Pipsqueak
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SO who are the biggest election campaign contributors to the two party system,oh yeah the very banks the author says they should reform.Don't hold your breath.

Wed, 07/13/2011 - 14:43 | 1452963 janchup
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Never. Too many craven fools in the mix.

Wed, 07/13/2011 - 14:36 | 1452935 andybev01
andybev01's picture

Why do you think it's called "sifi"?

It looks cool on paper but it's never going to happen.

Wed, 07/13/2011 - 14:29 | 1452910 Uncle Remus
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Orbit. Nuke. Sure.

Wed, 07/13/2011 - 14:24 | 1452883 NOTaREALmerican
NOTaREALmerican's picture

Sorry,   it's too late for this.   We don't have a Representative Democracy of the people anymore.  


The time to address this was before applied-socialism / crony-capitalism corrupted the society into believing they could have infinite ponies from the government.   The time was BEFORE we allowed Big-MIC to take root.  The time was 60+ years ago.   Way too late now.

Big-MIC, Big-Ag, Big-Road, Big-Water, Big-Airport, Big-House, Big-FIRE, Big-AntiDrug, Big-PoliceState all part of the same scam;  the politically connected getting loot from taxpayer.  Too many people are getting rich off the scams to stop now.    I don't want MY  socialist scam to end.  

Wed, 07/13/2011 - 14:18 | 1452865 Sudden Debt
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Not only the banks.

There are also to many companies who are to big.

Any company with over 100.000 employees should be cut into pieces.


Wed, 07/13/2011 - 15:53 | 1453235 Ghordius
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Max 10'000

Banks: restrict to one state, make them pay as much taxes as bonuses as dividends. They thrive on CB future liabilities! Our future debt!

They are a utility that uses a public good. They can only call themselves private companies if they are fully backed by private interests only.

TBTF is the mark of the parasite.

Wed, 07/13/2011 - 14:18 | 1452862 ivana
ivana's picture

Dear George,

that is the intention of banksters and corrupt system. Soon medium and small banks will be bought by TBTF zombies. "Sector consolidation".

End game is that zombies will still be around when everything collapses , receiving cash which will than be used for cheap buying of real assets

Wed, 07/13/2011 - 14:16 | 1452857 sunny
sunny's picture

The TBTF banks will never be broken up until the idiots that allowed, indeed encouraged, their growth are removed from power.  That won't happen until there are absolutely no other alternatives, the economy is in the trash and the dollar is worthless.  It's only a matter of time, but then timing is the thing, isn't it.  Don't hold your breath.


Wed, 07/13/2011 - 14:13 | 1452834 SparkySC
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Bust up the TBTF's now and let the ones they took down illegally come back.

For whatever it's worth- There's a chance of it occurring folks.



LEHMAN / WAMU could be coming back in a Grand BKquel Rising from the Ashes like the Phoenix. 

You may want to look into this developing story. WaMu in Court Today with an Equity Committee that is kicking ass. The GRAND THEFT BANK BY FDIC/JD IS GOING TO BE EXPOSED to the World.


They ran the crash LEHMAN playbook on WAMU. The FDIC seems to have seized a solvent bank.



Thu, 07/14/2011 - 08:44 | 1455516 Urban Redneck
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Moral Hazard 101 - All speculators are created equal, but some speculators are more equal others... some speculators are TBTF.

Wed, 07/13/2011 - 14:14 | 1452825 Everybodys All ...
Everybodys All American's picture

Agreed ... Obama is now enslaved to them now though. How much do you think of that 86 mil he just raised for his campaign came from these banks? You could also make a pretty good case that breaking the banks up could increase employment.

Wed, 07/13/2011 - 15:03 | 1453051 weinerdog43
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Combine that with Citizen's United and you have unlimited corporate funds drenching the pols.  Lo and behold, the banksters are the biggest contributors to both sides and this is what we get. 

Wed, 07/13/2011 - 13:53 | 1452755 Cognitive Dissonance
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Last chance ...

In an insane world there is no such thing as a 'last chance', just 'another chance' to increase the insanity.

Wed, 07/13/2011 - 15:25 | 1453151 JW n FL
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at the 5 minute mark.. is when the description of America’s Voting Habits is described accurately.

This will help you better make a case for what will be dragged out for as long as "We the People" can stay lazy.

Wed, 07/13/2011 - 14:43 | 1452964 jus_lite_reading
jus_lite_reading's picture

Last chance for what??? From what I have been reading we are past the last chance and moving in to the end game....



Wed, 07/13/2011 - 14:26 | 1452898 Milestones
Milestones's picture

Your argument is right out of the Coo Coo Nest----Probably quite correct I might add. The patients have seized the institution and the goobermint guards are protection them. My, my we sure the hell are a long way from Kansas.      Milestones

Wed, 07/13/2011 - 15:47 | 1453247 DaveyJones
DaveyJones's picture

come to think of it, I do have an urge to throw the water cooler through the window

Wed, 07/13/2011 - 14:04 | 1452797 SMG
SMG's picture

If not now? When?   I'm tired of being the bank's and the Oligarchy's slave. 

Wed, 07/13/2011 - 16:23 | 1453408 iDealMeat
iDealMeat's picture

Every day you make a choice to participate and therefore condone the system.

Cut your consumption in half. Cut up your CC.. Go to yard sales, farmers markets

Ride a bike.

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