Saturday, November 07, 2009

If it’s too big to fail, it’s too big to exist

Excerpted from a piece by Senator Bernie Sanders (Populist - VT) on HuffPost:

More than a year has gone by since Congress passed the $700 billion bailout of Wall Street. The Federal Reserve has committed trillions of additional dollars...

Today, most of the huge financial institutions still standing have become even bigger -- so big that the four largest banks in America (JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup) now issue one out of every two mortgages; two out of three credit cards; and hold $4 out of every $10 in bank deposits in the entire country...

If any of these financial institutions were to get into major trouble again, taxpayers would be on the hook for another massive bailout. We cannot let that happen. We need to do exactly what Teddy Roosevelt did back in the trust-busting days and break up these big banks...

If it’s too big to fail, it’s too big to exist.

Senator Chris Dodd (Political Class - CT) should have been at the financial wheel for the past 12 months. Instead, he decided to spend his time on healthcare. And while there is a lot of merit to reforming the healthcare system, Senator Dodd did not need to be leading the charge.

There were plenty of other Senators on the HELP Committee who could have - and would have - taken the charge. But Senator Dodd decided healthcare was his top priority... at the same time that the TBTF were getting even bigger.

Dodd's decision makes no sense to me.

As for Bernie's call for trust-busting, I would take a different approach to fixing America's monetary ills:

1) transition from fractional reserve banking to full reserve banking
2) transition from fake money
fiat money to honest money
3) end
the Federal Reserve

Tim White

1 comment:

Anonymous said...

Newsflash to Bernie the commie:

The way to stop "having to bail out these companies" is to STOP BAILING THEM OUT! Capitalism works best when government doesn't interfere.

"The best minds are not in government. If they were, business would hire them away." -- Ronald Reagan