Most people are aware of the domino theory, but for those of you who are not, it basically balls down to dominos being stacked in a way that if you let one fall they knock all the other dominos down in succession. Well that is what our financial industry is experiencing. The end result is less but bigger banks. You see the goal is a single bank and as you can see we are well on our way. Eleven banks have been taking down and before it's all over it may be hundreds. What most people don't understand is that it took years to get here and it's going to take years before it's all cleared up.

The culprit is call fractional banking, something most people have never heard of. This system requires a bank to keep only a fraction of the deposits on hand, which allows them to lend more and keep more money moving in the society. What this also does is to allow the fed to lend a bank more money then the bank should really have, and this also causes inflation. Because it allows the fed to print more money because there is no standard that would stop them.

You see we were once on the gold standard, this allows the fed to print only to the amount of gold we had in the reserve. You see it is easier to create and print more money if there are no controls, and the gold standard was a control. As it stands now the fed can print money as much as the government thinks it needs without any recourse. In other words they are creating money out of thin air. This could be good for the short term but over time it causes inflation, and inflation is bad for the economy.

So like a stack of cards or box of dominos eventually they all fall down. That's what we are experiencing today. A lot of people made a lot of money. Cards were stacked really high and now slowly but surely they are all falling down. That's why the Fed stepped in on the Bear stern incident, now the Fannie Mae and the Freddie mac incident, and now the Lehman incident. Now if you think that all these things have come together as the perfect storm by accident, you have every right to think that way, but is there more there then we can see.

At the end of the day all you have to do is follow the money and you will see who is benefitting most from our suffering, and you will find that the banks are buying banks for pennies on the dollar. Banks are buying houses for pennies on the dollar. So if you feel like someone is taking advantage of you it is probably a bank. But that's just my opinion.