Trump and GOP Want to Control Banking
Trump calls for '21st century' Glass-Steagall banking law
http://www.reuters.com/article/us-usa...
U.S. Republican presidential candidate Donald Trump on Wednesday called for a "21st century" version of the 1933 Glass-Steagall law that required the separation of commercial and investment banking, a change the Republican Party also supported in its 2016 policy platform.
Donald Trump and the GOP would not know a principle if one bit them.
http://www.reuters.com/article/us-usa...
U.S. Republican presidential candidate Donald Trump on Wednesday called for a "21st century" version of the 1933 Glass-Steagall law that required the separation of commercial and investment banking, a change the Republican Party also supported in its 2016 policy platform.
Donald Trump and the GOP would not know a principle if one bit them.
If the President still held a role like Lincoln of old (with only a couple of aids and only a couple of secretaries), we wouldn't have to worry about an imperial government. Sadly, that just isn't the case any longer.
I'm all in favor of banks and financial institutions being forced to separate their investment sides from their consumer sides for the sole reason that most consumers don't want their moneys tied up in the risks of financial speculation. When they want that they invest in stocks, bonds, mutual funds, etc. I think you're over-reaching here...
I just mean that banking is a business like any other. If, as happens, you place a large order for future delivery of axle bearings with a manufacturer, and they go bankrupt and default on your order, is it because the government allowed them to co-mingle their inventories?
Most people do not understand money, just as most people do not understand science, or pretty much everything, really... They want the government to insure their bank accounts, their hospital stays, their vacation plans, their lifelong educations, and their favorite spectator sports. Banking is just another business.
Without revealing too much, exactly how many different kinds of money do you have right now? Three? Five? Think about it...
How is an "income" (per capita) tax any different from any other?
"... creating legal tender from nothing..."
To expand on a popular myth, when John Galt wanted to build an electrical generator to light up Chicago and serve its energy needs, Midas Mulligan lent him 1000 ounces of gold to get started. Muilligan became an investor, expecting a return of 1 million ounces over a course of 20 years because of the fantastic potential of this new device.
Galt Power and Light went public and sold a million shares at $10 each, hired 1000 people and paid them on time every week for two years during start-up, and looked forward to a great future.
Sad to say, ironically enough, Galt was struck by lightning while boating on Lake Michigan with Ragnar. Totally dependent on his genius, the company folded overnight -- much the same way that everyone ran away from Arthur Andersen at the first whiff of trouble at Enron. Business is risky. In the famous words of Caldecott Chubb: "If there were no losses, there would be no premiums."
Was the money paid to the employees, suppliers, and others just "legal tender created out of thin air"?
Funds in savings and transactional type accounts are Guaranteed .Through FDIC( Federal Deposit Insurance Corporation) Paid for through FDIC Assessments ( think premiums) paid by banks based on several criteria or NCUA funded similarly . They were part of the original Glass Steagall . The FDIC doesn't receive any tax dollars; instead it's funded by the premiums paid by banks and thrifts for insurance coverage on deposits. Its deposit insurance fund is really just an accounting entry with the Treasury Department. I am in the Credit Union world and think that a separation of commercial and investment banking is a good thing . Two very different products .
Definitely !!!!!!!!
https://www.galtsgulchonline.com/post...
How is money a different product than a piston ring - without which we would have no powerful engines - or a different service than software development?
jeffdhurley wrote: "I am in the Credit Union world and think that a separation of commercial and investment banking is a good thing . Two very different products ."
Are we all not sick and tired of computer failures? Why not assess all information companies a percentage of their profits and establish a fund to repay users for lost time and other values when computers fail?
Jeff, why is banking a special kind of business? How is money a different kind of product or service? My thesis is that it is not.
Meanwhile-
Iceland jails nine bankers for crimes related to the 2008 economic crash.
Deceit and pretense- lending money for the purchase of shares in the bank ....
The banks caused the Iceland economy to collapse. Government let the banks go bust after they failed.
In the U.K. the rest of Europe and the US
much the same happened with banks being fined for market manipulation, money-laundering and mis-selling mortgages, shareholders lose but the chiefs still get their bonuses.
1. http://icelandmonitor.mbl.is/news/pol...
2. http://www.blacklistednews.com/Icelan...
and-
The new award of the economics Nobel Prize
is relevant, especially as it relates to performance measures and employee bonuses-
these are generally bad and do not correlate with owners/ shareholders interests. The banking industry is a prime example 'global economics is driven by the incentive packages given to top banking executives'. That is they exaggerate risk by rewarding success, while there is no penalty for failure.
1. http://www.businessinsider.com.au/nob...
2. https://mises.org/blog/2016-nobel-pri...
Investment banking is taking risk...as in enter at your own...it's understood.
I'm probably reading too much into it to think he saying make a clear wall between things insured and not insured.
You have a powerful related point suggesting gov't shouldn't guarantee any accounts. I think of FDIC insurance as different from other insurance because the FDIC is insuring a medium of exchange. It's not insuring value but rather something people trade for value. I can't see why that fact makes the insurance needs different. I would not be surprised to see the monetary/banking system go the way of the state-run telephone monopolies.