The trouble with Wall Street isn't that too many bankers get rich in the booms. The trouble, rather, is that too few get poor -- really, suitably poor -- in the busts. To the titans of finance go the upside. To we, the people, nowadays, goes the downside. How much better it would be if the bankers took the losses just as they do the profits.
Happily, there's a ready-made and time-tested solution. Let the senior financiers keep their salaries and bonuses, and let them do with their banks what they will. If, however, their bank fails, let the bankers themselves fail. Let the value of their houses, cars, yachts, paintings, etc. be assigned to the firm's creditors.
Of course, there are only so many mansions, Bugattis and Matisses to go around. And many, many such treasures would be needed to make the taxpayers whole for the serial failures of 2007-09. Then again, under my proposed reform not more than a few high-end sheriff's auctions would probably ever take place. The plausible threat of personal bankruptcy would suffice to focus the minds of American financiers on safety and soundness as they have not been focused for years.
"The fear of God," replied George Gilbert Williams, president of the Chemical Bank of New York around the turn of the 20th century, when asked the secret of his success. "Old Bullion," they called Chemical for its ability to pay out gold to its depositors even at the height of a financial panic. Safety was Chemical's stock in trade. Nowadays, safety is nobody's franchise except Washington's. Gradually and by degree, starting in the 1930s -- and then, in a great rush, in 2008 -- the government has nationalized it.
No surprise, then, the perversity of Wall Street's incentives. For rolling the dice, the payoff is potentially immense. For failure, the personal cost -- while regrettable -- is manageable. Senior executives at Lehman Brothers, Citi, AIG and Merrill Lynch, among other stricken institutions, did indeed lose their savings. What they did not necessarily lose is the rest of their net worth. In Brazil -- which learned a thing or two about frenzied finance during its many bouts with hyperinflation -- bank directors, senior bank officers and controlling bank stockholders know that they are personally responsible for the solvency of the institution with which they are associated. Let it fail, and their net worths are frozen for the duration of often-lengthy court proceedings.
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NOW this is legislative CHANGE I can definitely vote for!! If only the corrupt legislators would be held accountable too!!
ReplyDeleteEspecially if "their net worths are frozen for the duration of often-lengthy court proceedings," as in Brazil!!!!
They got it made for the winners in the world
ReplyDeleteI know just how you feel
They drink malt whiskey
all night long
and dine behind the wheel
E-mails show Goldman boasting
ReplyDeleteExecs bragged about money the firm was making as the housing market collapsed in 2007.
The banksters literally take over whole countries lock stock and barrel via the economic hitmen, bribery, blackmail, assassination.
ReplyDeleteNext up - Greece.
"Greece seeks international bailout
Financially battered country triggers emergency plan to draw cash from European Union, IMF."
When a country goes to the IMF scumbags, the country's leaders put up the entire infrastructure, power plants, waterways, land as collateral.
Then when the country defaults, the IMF bankers run the show 100%.
A good resource video about how this happens is Zeitgeist Addendum.
One needs to consider the historical power hierarchy and where things are headed before expecting justice from banksters:
ReplyDeleteFlow of Power, Pre-1776: God -> King -> Feudal Masters -> Sheeple
Flow of Power, Post-1776: God -> We, The People -> Elected Servants
Future Flow of Power: Lucifer -> Banksters -> Feudal Masters -> Sheeple
The peoples of the world are being led to an enormous point of crisis, and are thus being made ready for the metaphorical "anti-christ"
Truth is, if you could seize such items and arrest these people, the entire economy of the United States would indeed collapse in a heartbeat. Like it or not, they are the ones who keep you small people alive.
ReplyDeleteThe systems has been allowed to fester as is for far too long. Either way, you're in for incredible pain and suffering.
The critical problems facing America is that the nation has failed to wean itself off of oil and put a stop to its growth of population. 308 million people is TOO much.
Helter skelter is coming down fast.
ReplyDelete1:05 not true. Someone else would take their place. Sort of like the mob. One mobster goes down and anther takes its place. They do NOT keep us alive, they are torturing and slowly killing us. The collapsed economy would revive and flourish quickly, if it was allowed to fall.
ReplyDelete1218 steely dan, deacon blues great song, great group
ReplyDelete1:18 100% true. They are our oppressors and owners. We are the slaves. They have suppressed technology that would set humanity on a whole new course. JP Morgan killed free energy, pollution-free tech, thermal, etc.
ReplyDeleteThey are not benevolent in any shape or form. We get poisoned, while they pamper themselves. While they are heavy into Eugenics and ways to improve themselves and extend their lives, they attack our health at every turn.
They are obsessed with our demise and control.
It is difficult for some to accept that we are indeed subservient slaves to a group of dominant elite families, but we nonetheless we are just that in fact.
While the sheeple have slumbered, the elite Oligarch families have taken over every aspect of our lives.
There are obvious, easy ways to put a dent in their power like abolishing the Federal Reserve, IRS, and canceling all the fake obligations and debt. A true audit of the Fed would reveal to the American Sheeple that they have been sheared, deceived and openly robbed.
That is unlikely to happen because we live in a Matrix of lies. They hold all the cards. The 98% are bowing their knees to big government, corp media, and fake religions. Our owners are way above all this, they gave us all these systems of control.
The world around us is just one huge lie. Sanity can only come by coming to terms with this and dealing with it on a personal level. It is difficult because it is in our nature to be part of the herd, to seek out others acceptance and reassurance that we are sane.
Not going to happen if you are a rational, free thinking individual. You must be strong and stand alone most of the time. It is possible to be content and happy when you come to terms with the fact that somethings cannot be changed.
Simply reject the system. Don't vote, don't talk politics, don't support the lies. If you do you are a tool and part of the problem.
America is toast. Look out for yourself the best you can.
Well thank you 2:07
ReplyDeleteyou have fine taste in music.
I'd fancy your taste in wine is as cultivated.
:)
922 yes sir, you are correct, how about the acquired taste for women?
ReplyDelete