How to fix our banks

09 Aug

1. Inject transparency, primarily to bring almost $600 trillion of crooked insurance scams to the forefront. Force almost all swaps onto exchanges, not just the 20% as current proposed reform does. Secretary Geithner, Chairman Frank and Chairman Dodd are protecting the last of the Wall Street secret money-making schemes. They don’t want to force transparency on this market because it would disclose the fraud this massive bank scheme is — a taxpayer subsidized secret insurance market which sells cheap insurance to hedge funds, power and food and energy companies, and makes for huge profits at banks and insurance companies. Insurance and idle speculation in secret is a brilliant way for banks and other financial services companies to make money (who doesn’t want to collect insurance premiums every month for something you’ll never have to pay for?!) And a great way to make oil, food and electricity company CEOs richer as they pay less for their insurance. One problem — they are all surfing on the taxpayers back to the tune of $24 trillion at risk last I checked — and the U.S. government is the one letting them do it. Still. Now bigger than ever. 2. Demand capital to back Wall Street’s gambling. In Vegas, you need to have actual money to gamble. Your own money. It’s crazy, but true. Even today, in many cases more than ever, U.S. banks use America’s FDIC insured safe deposits to fund their own mad bonus-seeking speculation. Once the banks blow through that — they borrow from the biggest money printing house in the world, the U.S. Federal Reserve to do the same thing. This is truly insane. The banks and their traders keep the upside. You, the taxpayer, keep the downside. No one else in the world can pay themselves billions to take infinite risk with little or no money down, except a big bank CEO. And we thought they were good at their jobs making all that money, when all they did was rig the game using our government to do it. 3. Enact a tax-code to encourage long-term investment and discourage short-term profit. Fortunes should not be made in minutes but over years through the creation of value to society. As long as the easiest way for a man or woman to make money is to spend their day clicking for dollars, why would they bother doing all the work of investing in the long-term economic development of private business in America? Tax code in general should encourage investment, jobs, and innovation in America and discourage idle speculation as the easiest way for a college kid to get rich. There are sensible ways to use tax policy to encourage this that do not hamper liquidity. 4. Break up the Too Big To Fail banking institutions. Start with Goldman Sachs and J.P. Morgan. Right Now. How do you expect any other business to compete with the chosen few who are guaranteed profits? The more risk they take, the more they make. Why do you think they invented a fake $600 Trillion secret derivative market in the first place? Bigger bonuses baby. All upside. No downside. Thank you Uncle Sam. Thank you Secretary Geithner. – For more on this topic go to the expert: Dylan Ratigan. All of these ideas were proposed by him. I thought this article was good, but I claim no responsibility for it’s ideas.


Posted by on August 9, 2011 in Banks


2 responses to “How to fix our banks

  1. Tom Murphy

    August 10, 2011 at 1:57 pm

    Who is to blame for our nation’s credit rating being downgraded? There are many people on my list.
    First, I blame President Obama. He pushed through the stimulus plan that wasted close to $1 trillion dollars and we still lost jobs. What the heck did we get for the $1 trillion? Have you seen $1 trillion worth of improvements in our nation?
    Second, I blame President Obama, Pelosi Reid for passing Obamacare which is going to add trillions of dollars to the debt.
    Third, I blame Turbo-Tax Tim Geithner. Do you remember him saying in April that there is no risk to the USA losing the triple A credit rating? When asked about the potential of the downgrading Geithner said, “no risk of that.” “No risk.” Maybe I am wrong to blame Geithner, he has always been in over his head. Obama should be blamed for picking him to be Secretary of the Treasury.
    If you want to see who else to blame, let me suggest that you visit the website for Citizens Against Government Waste. They keep score on all of our Congressional members. Check out who is a waster of tax dollars.

    • Andrew Pelton

      August 10, 2011 at 4:19 pm

      This is a wrong statement. Check your facts. Check the CBO report.


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