What To Learn From 147 Bank Crises

Marketplace:

Here at Easy Street, I've been interested in the idea - the fear, really - that 2012 will be a replay of the Worst Year in Recent Financial Memory: 2008.

Here's what's haunting us: The country's biggest bank, JP Morgan, made an enormous bet earlier this year that the world economy would fall into crisis. (They've since reduced that bet, but there's no word on whether they've reduced their confidence.) The European financial crisis is intensifying every day, with five countries in bailout mode. We know that U.S. banks worked to become stronger and hoard money, but they've still come up short: Economist Robert Engle estimates our banks need $500 billion more on hand to survive a deep financial crisis.

Read the whole story at Marketplace

Comments

[OgreDaddy]

05:30 AM on 06/27/2012

What to Learn?

2008 was the biggest Inside Job Bank HEIST in world history.

Banksters privatized the wealth and passed the debt
onto the tax payers. That's what we learned.

[HopeWFaith]

03:38 AM on 06/27/2012

Break up these huge banksters' controls. They have not earned anyone's trust.

[understandthis]

01:40 AM on 06/27/2012

Just get rid of THE FED ALREADY!!!

The following are excerpts from "MONEY FACTS 169 Questions and Answers on Money - A Supplement to A Primer on Money", prepared by the Subcommittee on Domestic Finance, House of Representatives, 88th Congress, 2d Session:

Question 164 - "Is the trustee notion of monetary policy making alien to America democracy?"

Answer - "Of course. The claim that the people do not know what is good for them, and therefore a small group of men should be given the power to make decisions and then to take action without being held accountable to the people is 100 percent undemocratic. The essence of democracy is that the people decide for themselves, through their elected officials, what is good or bad for them. Further, to give monetary control to a group like the Federal Reserve is to hand over enormous power unfettered by responsibility to anyone. In a democracy, especially the American form, the holders of power, almost without exception, are responsible to the people, through their elected officials in the use of this power. The Federal Reserve's ideas that they should be considered trustees rather than stewards runs counter to anything that Americans have believed about power and responsibility since the founding of the Republic."

Question 165 - "Who favors Federal Reserve independence?"

Answer - "The private banks who control the System, together with some allies - notably, Wall Street newspapers and other members of the financial community."

[understandthis]

01:38 AM on 06/27/2012

"Economist Robert Engle estimates our banks need $500 billion more on hand to survive a deep financial crisis." BU!! $h!&

ALL LIES and fear mongering to take more from United States tax payers. Hell, then what turn over billions to London Banks??? Happen last time!!!

[McKibbinUSA]

12:28 AM on 06/27/2012

I think the main lesson from the most recent economic crisis is that "too big to fail" banks are also, "too big to manage," "too big to regulate," and therefore, "too big to keep around..."

[AsItEverWas]

01:49 AM on 06/27/2012

I think the main lesson from the most recent economic crisis is that "too big to fail" banks are... somehow immune to the laws that cover fraud, insider trading, misleading advertising, consumer protection, etc. Effective enforcement of these laws would regulate the banks. TBH while I have no love for the system, bigger banks should be able to survive shock more efficiently than smaller ones if effective management systems are in place, the problem obviously being that they weren't. Politicians of both parties throughout the western world are ultimately responsible for lax oversight and treating economies as though they are infinite cash machines which can be used to manipulate voters... then again I'm often completely ignorant about real life....

[worker beenumbed]

11:17 PM on 06/26/2012

Large financial institutions should include all contracts on the balance sheet.If not,.every contract should be detailed in the footnotes.For exaample,credit default swaps avoided the balance sheet to contribute to the crises .Footnotes could be very large.Yes,do it or go to jail.

[worker beenumbed]

11:07 PM on 06/26/2012

"That created by government " Is the treasuries ,iou's which Congress sells to the Fed and others .The Fed then writes checks which are paid to the order of the Treasury which cashes them to pay for wars and bank bailouts etc.Yhe Fed cannot write a bounced check to the Treasury by law.

[romus]

10:59 PM on 06/26/2012

U.S. Heading For Financial Trouble

http://www.cbsnews.com/stories/2007/03/01/60minutes/main2528226.shtml?tag=mncol;lst;1

100% Reality

google

Bernanke's Failed CNBC Predictions

http://dailybail.com/home/a-movement-by-the-people-to-prevent-the-reappointment-of-the.html

Eliot Spitzer: "The Federal Reserve Is A Ponzi Scheme" (Inside The Fed's Secret Pile Of Trash With Ratigan, Spitzer & Toure

http://dailybail.com/home/eliot-spitzer-the-federal-reserve-is-a-ponzi-scheme-inside-t.html

The Hammer Gets Hit By A Tree

http://dailybail.com/home/the-hammer-gets-hit-by-a-tree.html

The American Dream By The Provocateur Network

http://www.youtube.com/watch?v=ZPWH5TlbloU

Punk Economics: Lesson 3

http://www.youtube.com/watch?v=wDFgtb0by4E&feature=channel

U.S. National Debt Clock

http://www.usdebtclock.org/

[HopeWFaith]

03:36 AM on 06/27/2012

GREAT POSTS! GOOD JOB.

[PotomacOracle]

09:34 PM on 06/26/2012

What we must learn, and quickly, is that there are two categories of money; that created by government amounting to 3% of all the money, and the 97% created by banks, of which is debt money, credit.

We have been brainwashed to believe that all money is credit, created by private banks and that there are no alternatives to this system called fractional reserve banking.

America and indeed the world needs to recognize that with credit money there will always be infinite debt service payments to private bankers. Not so with public money.

We see the consequences of private bank control of fractional reserve in current Euro zone nations who relinquished their currency sovereignty to private banks in the belief that a currrency union would serve as the lender of last resort where, as we now know, they were decieved by private bankers.

The fundamental reason for private bank controlled currency is to capture private and public sector assets through bankruptcy when debtors fail to make debt service payments. They fail to make these payments when they can't raise revenue or borrow in sufficient amounts.

Whether a nation issues its own currency or is dependent upon a Euro Zpone arrangement they are prey to bankers who manipulate currencies and the supply of credit.

History attests to the fact that public control of fiat currency is much more productive than private control. This we must learn if we would only, from time to time, review our own history.

[getoffmedz]

07:44 PM on 06/26/2012

It's coming, folks.

Guess who will get blamed?

[worker beenumbed]

11:34 PM on 06/26/2012

Claribel the clown will be blamed unless you give me a clue

[getoffmedz]

11:49 PM on 06/26/2012

Shirley, you jest?