Quote:
Originally Posted by Paul Markham
What ever you're smoking roll me one. 
The problem was letting people fill their own pockets with money they do not have and will not earn. While they got rich the rest of us will be left to pick up the tab. It was the "free market" that got us into this mess. The idea that more people should be able to get into banking to make it easy shows how flawed your argument is. More people with less control in banking will make it better. Please stop smoking what you are and let your brain restart.
Your idea works if all the people who come in are honest and think long term. Sadly the truth is the opposite. If you can't trust Government to regulate you certainly can't trust Corporations to self regulate. |
The market isn't the one forcing you to pay for the government's purchase of bad debt. And the government's control over interest rates is what caused the bad debt in the first place.
Re-opening the banking industry to full competition and individual bank-monies (rather than government issued fiat currency) would prevent the economic super-cycles we call great depressions by letting the market even out the bumps -- and indeed letting bad lending practices occur and those responsible go bankrupt.
All of the banks are insolvent -- all of them! Its how the system works. They are allowed to print more credit than they have with the fed (more than 10 times more) and the government supports them in doing this.
It's the government which created the controlled market.
It's the government which forced everyone to use paper currency.
It's the government which set the rediscount rate artificially low, causing the massive credit expansion in the first place.
It's the government who allow the individuals involved to hold a limited liability status.
And now it's the government who is going to steal from you to clean up their mess.
So how is it the market's fault? The government intervened, and now the government cleans up its mess, all with your money. Maybe you should blame the government?