Investment banks leverage up casino-like. When they fail, they put in jeopardy the commercial banks and you, Joe taxpayer, have to come to their rescue. Obama wants to stop that by implementing the Volcker Plan. Some say it doesn't go far enough, but at least it is an attempt to keep insured deposits out of the investment bank casino. That MUST be done.
I feel sorry for the Children,what has happened to the leadership in this country? We need strong people who will stop the HOGS and put dignity back in the work place.
Volccker is just a start. It's a good start and I like Volcker, even if he is a central banker. It does not go far enough because it doesn't remedy the biggest fault with fractional-reserve banks. Namely that they don't give Joe Taxpayer the option of risking their money when the bank originates loans. As things stand now, all depositors are forced to have their money be used to originate loans rather than being given the choice of how much money they want in a fully reserve account and how much they want to risk by allowing the bank to originate loans with it.
For an example of how this would work check out the Free Lakota Bank: http://freelakotabank.com
There you have the option of putting some, none or all of your money in a general funds account from which the banks makes loans, the rest of your accounts are fully reserve. Thus no matter what happens your money is safe, so long as it is in a fully reserve account. Instant defense against bank runs and that pretty much kills any argument for a central bank. Without central banks, investment banks and their ilk can never get strong enough to threaten the entire economic structure of this country. Pretty simple solution and it plays to the strengths of the US, namely freedom to choose.
It won't make any difference. The source of the problem is the Federal Reserve and Fractional Reserve Banking itself. More rules and regulations is like putting a bandaid on a severed artery.
Patching symptoms will not cure the disease. The Government has been treating the symptoms of financial collapse for years while never addressing the root cause.
Clinton and the Republicans all signed off on the Glass–Steagall Act Repeal... but the system was still broken when it was in place.
Obama's Populist appeal with this one sounds great to the uneducated masses.
But the fix has been proposed many times by Ron Paul and he keeps running up against a Brick Wall.
Obama says one thing then does another. He says he wants to go after banks then he reappoints Ben Bernanke to continue the destruction of the American Economy.
This sort of thing isn't my forte, and it may be a bit off topic...but I have, since all this economy mess started--been really confused about all this bailing out of banks, companies...etc.
Am I naive? I thought one of the points of capitalism was that if a company fell too bad, so sad...there'll be another to rise in it's place? Sort of, economic survival of the fittest?
I could be wrong. But that's all I kept thinking every time I heard about bailouts.
Technically the bank shouldn't have been bailed out, but we are not in a purely capitalistic society. The government, starting with George Bush Jr was afraid that if a lot of the big banks went down that it would take the entire economy with it.
I bet this mindset started waaaay before poor Mr. Bush. He definitely was not the brightest spot in American history, put blaming all country problems on him seems a bit unfair still
No,not true! They would have to go and get a real JOB!
The issue rests with the Federal Reserve and how they manage the banks under their control. This private institution is dedicated to make themselves money and get more power.
Everything you see, from any government official, including the Obama administration, is just public relations. We are coming up on the 100 year anniversary of the establishment of the Fed. The dollar will likely not survive
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
The wisdom this man had is astounding even today.
by onetrueheart7 years ago
Has anyone heard about how Obama wants to increase instructional time? Well I have been reading on some blogs around the web he wants to do this so boys can start taking sewing and knitting classes. I do not...
by Onusonus5 years ago
“Barack Obama is now putting the United States squarely a decade behind Britain. Listening to the President’s State of the Union message last week was like a surreal visit to our own recent past: there were, almost...
by nicomp really7 years ago
Obama: ‘Don’t Want the Folks Who Created the Mess to Do a Lot of Talking’http://www.breitbart.tv/obama-dont-want … f-talking/Not a sound bite, not edited, not taken out of context.
by tony07246 years ago
I thought that Obama was supposed to be the hope and change guy who believed in transparency.Now it seems his counsel wants to withold writings by Kagan to the judiciary committee ? Remind you of anyone ? Hope and...
by Dan Harmon18 months ago
Obama has now decided that forcing you to pay "prevailing wage" (read as "union wages") for all government contracts isn't enough - he now demands that you pay workers for not working as well. ...
by Cassie Smith5 years ago
Congress should get rid of oil subsidies. Not only should we get rid of oil subsidies, we should tax it more. Let's all write to our senators and congressmen to get rid of oil subsidies and tax oil more and...
Copyright © 2017 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.