my question: why don't we imprison bank CEOs when their bank crashes? we could bail out regular people, but let everyone else (the greedy board of directors, especially) sink into the quagmire of their own avarice. further, this imprison-the-CEOs is the strategy followed by Iceland, and their economy is one of the strongest worldwide after the 2008 meltdown, as the IMF noted here:
With regard to the poll, the answer is 'all of the above' and ever repeating cycles. And that because, in answer to your obviously rhetorical question in the title, the banking system is anything but safe. Volatility is, frankly, built into what's been gamblified (did I just invent a word?) by the investment banking world. Volatility is great, cycles are great, bet on any- and everything, hedge any which way. This system will definitely not want to change.
Regulation needs to be put back in place. We need, as was the case once upon a time, a clear separation between traditional banking and all forms of investment banking (aka gambling with other people's money). Who will, once in power, have the guts to do that? There's Warren and Sanders among the rare few - but the powers that be will never allow them at the helm. I think it'll take a collapse far worse than 2007/2008 for a system change, for an actual rebuild of the system.
I’m listening to this thinking that it makes sense to separate the commercial from investment banking, again, even if you start with baby steps. If you look at the mess China is in with their local government debt, we must head that off here. What role do munies play in this? I believe climate risk needs to be factored in fully, which is probably another story. Maybe the reinsurance industry can be wedged in there to mandatorily protect an earlier risk level before the riskier banks get access to “bailouts”, whether private or public. What conditions did the big banks place in exchange for their $33 B yesterday?
Of course, all that takes willing parties. We need a definitive election in 2024.
And meanwhile, we have to educate the public on what has been positively done since 2021 to right this ship. America.
M curious why so many believe the Fed will raise rates next week. I would think that in view of slowing inflation growth (no, prices won’t come back down as long as most markets are near monopolies), jay Powell might just pause. The banking industry and stock market is spooked. Sit a bit and wait, would be what I’d expect from the Fed. A month won’t matter.
If rates increase I would suspect plain stubbornness to be the reason. But that’s just me.
I’m not sure what new political catastrophe will happen next week. What I do know and understand is that political history tends to repeat itself over and over and that we’re not a nation of people who rely upon or prepare to avoid repeating historical mistakes, regardless of the information provided to us or through our actions and experiences. It’s one of the reasons we ended up with trump and company. And the banks are about as safe as our democracy.
I pretty much believed this already, but in listening to the conversation, it becomes crystal clear why so many in the Middle and Lower classes back Trump. Blatant examples like this one indicate that our political/economic system has come to work for and coddle those at the top, while stringing along the masses with tepid gestures and empty promises. (I’ve been part of the Single-Payer healthcare movement for three decades, and if we’ve moved much beyond square one I’m not aware of it.)
When people become hopeless and angry, some just want someone like a Trump who can burn the whole system down — and his personal foibles are irrelevant.
You’d think “wise” leaders would see this and start shifting the focus at least to some degree. But unfortunately, today’s leaders seem to be on a short money-leash to the plutocratic donor class.
My thoughts on the banking crisis? First we'll see the usual collapse of smaller banks, Americans earning less than $400,000 per year will lose their savings, some older Americans will lose their pension funds, politicians will wring their hands, a scattering of bills will materialize to rectify some of the grossest criminal behavior of banks, a few bills may even pass. The economy will improve briefly, then people will reelect repugnants, who will roll back the regulations setting the field to repeat. This has happened so cyclically in America since the nineteenth Century and we - the ordinary people never learn.
First, congratulations on our anniversary. Thank you for starting this great Saturday morning get-together and keeping it going.
I like the moments when we come to a sense of how profound the problems are, and we wonder how we even start to "fix" them.
This past week, I happened to come across a Fortune magazine article dated September 24, 2018, by Glenn Fleishman. The title reads: "Trump Rolls Back Train-Braking Rule Meant to Keep Oil Tankers from Exploding Near Communities."
As with the financial derailments, the problems were identified and foreseen -- and this makes things more frustrating than ever.
Congratulations Heather and Robert, on your one year anniversary of Coffee Klatch! I was able to have my coffee while listening to you this morning! Yay! Let us know if mugs with your 'mugshots' are available! BTW ; Happy Spring!
my question: why don't we imprison bank CEOs when their bank crashes? we could bail out regular people, but let everyone else (the greedy board of directors, especially) sink into the quagmire of their own avarice. further, this imprison-the-CEOs is the strategy followed by Iceland, and their economy is one of the strongest worldwide after the 2008 meltdown, as the IMF noted here:
https://www.imf.org/en/News/Articles/2015/09/28/04/53/socar031315a
With regard to the poll, the answer is 'all of the above' and ever repeating cycles. And that because, in answer to your obviously rhetorical question in the title, the banking system is anything but safe. Volatility is, frankly, built into what's been gamblified (did I just invent a word?) by the investment banking world. Volatility is great, cycles are great, bet on any- and everything, hedge any which way. This system will definitely not want to change.
Regulation needs to be put back in place. We need, as was the case once upon a time, a clear separation between traditional banking and all forms of investment banking (aka gambling with other people's money). Who will, once in power, have the guts to do that? There's Warren and Sanders among the rare few - but the powers that be will never allow them at the helm. I think it'll take a collapse far worse than 2007/2008 for a system change, for an actual rebuild of the system.
Happy klatchaversery! what a great thing it’s been for us all!
I’m listening to this thinking that it makes sense to separate the commercial from investment banking, again, even if you start with baby steps. If you look at the mess China is in with their local government debt, we must head that off here. What role do munies play in this? I believe climate risk needs to be factored in fully, which is probably another story. Maybe the reinsurance industry can be wedged in there to mandatorily protect an earlier risk level before the riskier banks get access to “bailouts”, whether private or public. What conditions did the big banks place in exchange for their $33 B yesterday?
Of course, all that takes willing parties. We need a definitive election in 2024.
And meanwhile, we have to educate the public on what has been positively done since 2021 to right this ship. America.
I answered "Other" because I don't have a single goddam clue what the fallout will be! LOL!
Will the Extremists running Congress get the memo? Can Janet Yellin and President Biden do anything? We shall see!
M curious why so many believe the Fed will raise rates next week. I would think that in view of slowing inflation growth (no, prices won’t come back down as long as most markets are near monopolies), jay Powell might just pause. The banking industry and stock market is spooked. Sit a bit and wait, would be what I’d expect from the Fed. A month won’t matter.
If rates increase I would suspect plain stubbornness to be the reason. But that’s just me.
I’m not sure what new political catastrophe will happen next week. What I do know and understand is that political history tends to repeat itself over and over and that we’re not a nation of people who rely upon or prepare to avoid repeating historical mistakes, regardless of the information provided to us or through our actions and experiences. It’s one of the reasons we ended up with trump and company. And the banks are about as safe as our democracy.
"The more things 'change,' the more they remain the same".
I think banks will 'stabilize' ; Too much is at stake, even for the greedheads.
I pretty much believed this already, but in listening to the conversation, it becomes crystal clear why so many in the Middle and Lower classes back Trump. Blatant examples like this one indicate that our political/economic system has come to work for and coddle those at the top, while stringing along the masses with tepid gestures and empty promises. (I’ve been part of the Single-Payer healthcare movement for three decades, and if we’ve moved much beyond square one I’m not aware of it.)
When people become hopeless and angry, some just want someone like a Trump who can burn the whole system down — and his personal foibles are irrelevant.
You’d think “wise” leaders would see this and start shifting the focus at least to some degree. But unfortunately, today’s leaders seem to be on a short money-leash to the plutocratic donor class.
So here we are.
My thoughts on the banking crisis? First we'll see the usual collapse of smaller banks, Americans earning less than $400,000 per year will lose their savings, some older Americans will lose their pension funds, politicians will wring their hands, a scattering of bills will materialize to rectify some of the grossest criminal behavior of banks, a few bills may even pass. The economy will improve briefly, then people will reelect repugnants, who will roll back the regulations setting the field to repeat. This has happened so cyclically in America since the nineteenth Century and we - the ordinary people never learn.
First, congratulations on our anniversary. Thank you for starting this great Saturday morning get-together and keeping it going.
I like the moments when we come to a sense of how profound the problems are, and we wonder how we even start to "fix" them.
This past week, I happened to come across a Fortune magazine article dated September 24, 2018, by Glenn Fleishman. The title reads: "Trump Rolls Back Train-Braking Rule Meant to Keep Oil Tankers from Exploding Near Communities."
As with the financial derailments, the problems were identified and foreseen -- and this makes things more frustrating than ever.
Banks should only be banks! Stop this universal banking system, where banks is in everything
The banking system is not currently safe.
Congratulations Heather and Robert, on your one year anniversary of Coffee Klatch! I was able to have my coffee while listening to you this morning! Yay! Let us know if mugs with your 'mugshots' are available! BTW ; Happy Spring!