Folks, take note: the FDIC has double its staff compared to 2007 to deal with troubled banks, and the number of troubled banks is higher than ever -- almost 900.
The banking crisis is not behind us, and the bailouts did not "work." Well, actually they accomplished their real goal (in my opinion) of keeping Wall Street's biggest banks in business, but other than that -- FAIL. Remember this was all about keeping credit flowing to small business? Remember October 2008?
MB360 hits the nail on the head what the real problem is:
"Frankly, both parties are beholden to the checkbooks of large financial institutions. On a bigger level, if we want politicians to represent the interests of the people without worrying about financing a campaign we should seek radical reforms in our political financing system. [That means publicly financed federal campaigns! - J] There is little desire to do this from Wall Street investment banks since their return on investment (ROI) has yielded a fantastic sum. Nothing better than guaranteed taxpayer money when all you have to do is funnel a tiny percentage of this back into the political machine every two years."
Assuming we can get Wall Street out of Congress here's what we must do:
"We need to bring Glass-Steagall back. We need to split commercial and investment banking once and for all."
And here's MB360's take on the debt ceiling brouhaha:
"The debt ceiling debate is comical in many ways. After decades of spending like maniacs we all of sudden want to find restraint especially after we've given the banking system trillions of dollars! [$2.84 trillion is currently stored on the Fed's balance sheet. Remember that next time you hear somebody say, "The bailouts (meaning TARP) worked." - J] First, the interest payments would skyrocket so right off the bat we would increase our own interest payments. Not smart at all. We need to be honest and like any household facing tighter times, we need to find more revenues and cut spending."
Posted by mybudget360 | July 13, 2011
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