Why Are Banks Too Big To Fail?
71Dogs, Not Banks, Are Your Best Friend
Banks Are Too Big To Fail They Say!
I am thoroughly disgusted with congress, the fed, banks and all the idiots that run our financial system. I have patiently waited for those paid shills in congress to ask the question: Why Are Banks Too Big To Fail?
I could care less that someone is telling us that they are too big to fail. I want to know why they are too big to fail. I want to know exactly why they are too big to fail. If someone knows they are too big to fail they must know why, right?
This is either the biggest con job in the history of the world or we are in deep deep do do. I need the fricken question answered and somebody better damn well answer it soon.
One idea is that these banks would wipe out FDIC. Keeping them going makes FDIC a viable insurance. Well, what if something wipes these banks out anyway, like massive credit card default? Won't this put the FDIC at risk? No one has really ever tested FDIC if there was a run on all the banks. FDIC keeps people from running away from all the banks, unless the banks truly suffer a massive credit meltdown. Then What?
There are people taking all their money out of money markets. We know of massive withdrawels, like 550 Billion Dollars in the timespan of one hour. By the end of the day the withdrawel would have exceeded 5 trillion dollars. See the video below for that information.
Paulson gave the banks money and a lot of tarp money because of this huge withdrawel to stabilize the system. It is my view that the banks could indeed lose the confidence of everyone. I don't recall that this revelation of near bank meltdown being reported by any news source. Americans are being left in the dark. Perhaps we do need to put our meager savings under the mattress!!
Again, either this fear of meltdown is a major fraud upon the Amerian people or people are getting really scared of putting capital into the institutions of the United States. Neither scenario is very comforting. If it is a meltdown, it will be years before the United States economy stabilizes. Years, and years.
Of course the really bad situation could be that the banks are too big to fail and also too big to bail out. That will cripple the United States for longer than either of us want to know. Hopefully it will curb the government's appetite for illegal empire building!
Bank Failure on Amazon
|
Bailout: An Insider's Account of Bank Failures and Rescues
Price: $34.60
List Price: $34.95 |
|
Belly Up: The Collapse of the Penn Square Bank
Price: $15.58
List Price: $27.00 |
|
Bank Failures
Price: $0.99
|
|
The Crook
Price: $2.73
List Price: $14.98 |
Links to bank failure and investing dangers
- Why Goldman Sachs Is Committing Treason
With regard to the September, 2008 run on the money markets, which reduced them by 500 billion dollars in 2 hours, it has not been revealed who made that run on the banks. Some have said that the Chinese made... - Silent Run on Banks
A silent run on the banks is a reality. It is caused by electronic withdrawals, and we may not get a sense of a bank panic going on because there are no lines outside the banks. E banking, once thought to be... - Alt A Option Arm Meltdown Chart
You all need to look at this chart. What is facing the banks is no longer subprime, but is the alt a and option arm meltdown that will dwarf subprime in dollar value of the real estate. This meltdown lasts into 2012. I repeat, 2012!!!! - How Safe Is My FDIC Bank Account
Did you know that there was a run on the banks in September 2008 that threatened the American banking system? Oh, the mainstream useless media didn't tell you? 500 billion dollars were withdrawn in a little... - Regulatory reports show 5 biggest banks face huge losses | McClatchy Washington Bureau
Disturbing and important report of potential catastrophic losses by the five biggest banks. (This is why banks want to hide these assets by suspension of Mark to Market.) - George Bush Legacy
Never has a president of the United States been engaged in as many outright, verifiable lies that have taken down our country in economic power, prestige, honor, and morality as the younger George Bush. So... - OpEdNews
Government policy makers, Wall Street financial gamblers, and the mainstream media are misrepresenting the ongoing financial difficulties as a problem of illiquidity or lack of cash. In reality, however, it is a problem of insolvency or lack of trust - $550 Billion Electronic Run On U.S. Banks Nearly Triggered Financial Collapse :: The Market Oracle :
$550 Billion Electronic Run On U.S. Banks Nearly Triggered Financial Collapse :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website - Investing Recession Depression
Investing in a recession is quite different than investing in a depression. To be honest, we do not know which way it will be going. Investing in a recession requires an eye toward future recovery. Indeed...
This Can Happen Again. Bank Failure Through Massive Electronic Withdrawels!
Why Are Banks Too Big To Fail? in the News
- Q&A with David Cay Johnston: Government can regulate the too-big-to-failCanandaigua Daily Messenger15 hours ago
We continue our occasional series with Pulitzer Prize-winning author David Cay Johnston, a Brighton resident and former reporter for The New York Times.
- ‘Too small to prevail’Culpeper Star-Exponent12 hours ago
Businessman touts idea to help Main Street
- Why community banks need Obama, and he needs themThe Christian Science Monitor4 days ago
President Obama met with 12 community bankers Tuesday in a bid to spur lending to small businesses. They were looking for action from him, as well.
PrintShare it! — Rate it: up down flag this hub
Comments
We aren't supposed to know. That could mean that we are in deep do do.
Also if demand is down, Gary, then why do we need so many banks? They can't have it both ways. They cannot be crucial to the financial system yet not be needed at the same time. More bank doubletalk.
Hello bgamall, this all reminds me of the old movie Cool Hand Luke where Paul Newman said "What we have here is a failure to communicate" as he began to woop on the evil Captain.
Great Hub
Hey Born, I think it is a deliberate failure to communicate. I wish I had a track of where money, big money, in the USA is moving to right now besides treasuries.
But if banks are too big to fail and too big to bail out, we are headed for a severe financial meltdown.
Banks are to big to Fail? I will answer your question with some questions.
So, Where Does our Money Come From? It is borrowed from the FED which is an independent Corporations Made up of Member Banks. (Starting to see it)
How do we get this money? Our Government Borrows it on good Faith that We the People will pay our taxes and thus pay our Interest Payment on the Public Debt. All Income Taxes go to the Interest payment by law nothing else. All other functions of Government come from some other tax, levy or fee.
From Who do we Borrow this Money from which Said National Debt is Composed? The Same Place everyone else does the Bank.
The sad fact is our Country has been enslaved by the Bankers Since Grant was president. No ones talk about it, but we the People are owned by the banks and our bound by law to pay up whether we like it or not. So all this is just a dog and pony show in order to prevent revolt.
http://www.financialsense.com/fsu/editorials/gnazz
http://www.financialsense.com/fsu/editorials/gnazz
http://www.financialsense.com/fsu/editorials/gnazz
http://www.financialsense.com/fsu/editorials/gnazz
http://www.financialsense.com/fsu/editorials/gnazz
http://www.financialsense.com/fsu/editorials/gnazz
http://www.financialsense.com/fsu/editorials/gnazz
Our Money is just Monetized Debt. The above links are the best boiled down synopsis of our financial system.Â
Unless we are going to Washington with an Army there is absolutely zero that can be or will be done about.
TMG
Agreed, but what I am saying is that since they are too big to fail, and American consumers could be tapped out, then they may not be bailed out either. Which means the entire credit system could be on the ropes. I don't know if that is true, but it could be.
Also the tail is wagging the dog. Citibank and BAC are wagging the fed, based on Bernanke's testimony yesterday when he said he does not like the too big to fail situation.
It is not on the ropes, they are just trying to squeeze every last dime out of us while we still have dimes to squeeze.
I call it the big bank Theory. Since there are only just 4 actual banks that control the entire supply of Money it is easy just to look at them as One.
They own almost all the real estate Since most buy with a mortgage. They own all of the Goods Manufactured and sold. As they provide the Financing for Industry.
So They own it when they sell it and when you buy it with credit. So they are only squeezing you for the interest. It is like me giving you 20 thousand to buy my car I only spent ten thousand on. So you give me my 20,000 back and pay interest on the twenty thousand.
See how cool that works for the bank. On cars they buy them 3 times before you do. And since they finance the raw material they get them for practically nothing and collect on 3 level of interest with progressively inflated prices.
Really cool
I want to be a banker.
TMG
This will work great until the middle class tanks. The problem in the US is that we don't make things, just sell each other real estate and insurance. Our economy cannot restart without housing. It shouldn't be that way. That could really hurt the banks if RE becomes distasteful to Americans.
I think they now know that this is where they have the banks by the balls. That is why the banks want Americans to have recourse loans. They know the middle class is giving them the finger with non recourse loans.
I agree, the Real estate, and Auto Industry is where the bank really digs the local market.
But, I don't think this hurts the bank they still own the world. The money is fake. We are the ones hurting when it doesn't pass through our hands in order to buy the necessities.
TMG
Well, it is clear Moneyguy, that the shareholders were thrown under the bus when BAC took over Merrill. So I wonder who it is who is making the money if not shareholders?
It's the old Sugar Market Shakedown, In the Old Days of Greed, the big players would move the market to shake out all of the little players in order to increase level of ownership.
Simply put, we on the ground think in terms of Money. Dollar Bills, are just monetized debt that is passed around real Wealth is ownership of property.
Each Share of stock is a percentage of ownership, regardless of Dollar value (Dollar value is an imaginary arbitrary value) placed by the market. So, you take the market up (Notice this applies to all real assets) Get all the small players in at peak prices, Slam it down and the little guys scatter, do to lack of understanding and stay power. The big guys not only get bargain basement value on the available shares, but they get the taxpayer to take on more debt to give them free shares.
So, yes the little guys got the bus, the big guys have consolidated their positions to levels not seen since the 1930.
It is a land grab on both the Real estate side, and the Business side.
TMG
Let's see how it plays out. So far money and wealth keeps consolidating at the top. No doubt about that.
I'm thinking it plays out to the point of sudden and total economic collapse. Geither's proposed $2 TRILLION bailout still hadn't been spellchecked--and that's in addition to the TARP money ($700 billion), the stimulus ($790 billion), the current national debt (over a trillion), and whatever ungodly amount the Fed has thrown at the banks on their own authority.
As you said in the forums, next will come the credit card defaults, then the commercial defaults, mixed in with the next wave of Alt-A mortgage defaults that is already starting, and sometime in there, boom, the whole house of cards comes right down.
The banks ARE NOT too big to fail. They've been failing left and right for a year now. Paulsons just spent the first half of TARP covering it up by brokering acquisitions.
Something has to break, like you say pgrundy. I think that if they are too big to bail out then it will be necessary to nationalize them. But only time will tell. I certainly would not buy stock in the banks, although some may want to gamble. I see that the alt a adjustment chart is really amazing. I will try to find one and post it here.
GaryLeeVilleneuve says:
11 months ago
Thank you for posting this video and putting a spotlight on it. I've seen it, too, and you're right: except for the actual CSPAN broadcast (and it's reproduction via the internet) there has been virtually zero news coverage. "What person or combination of people were responsible for this draw down, why did they all do it at once like this, and how is it even possible that this much money could simply disappear in one hour?" are just a few of the questions that automatically spring to mind. Five TRILLION in one day if it hadn't been stopped!? What!? Another, perhaps more important question is, "Why aren't we supposed to know about it?"
"I don't recall this revelation of near bank meltdown being reported by any news source. Americans are being left in the dark."
I couldn't agree more. This is a good article.