BANKING CRISIS - WORSENING NOT IMPROVING - LOSING TRUST

[Morpheal]

BANKING CRISIS - WORSENING NOT IMPROVING - LOSING TRUST

The real solution to the growing, not yet diminishing, worldwide banking crisis is not yet in sight. Trust is slowly perishing, not growing, in regard to major financial institutions and investment.

The one solution possible, and practical, for restoring trust is simple and yet highly unpopular, exactly because it is so necessary and
so many fear for their financial lives within the finance community. It is largely America's fault and America should lead the way to the solution, rather than following in the painful wake of fiscal destruction that is sweeping around the planet.

Unless fully empowered government auditors are placed in private institutions, there is no more basis for trust.

American spiritual enforcement of piratical self interest, above all other values, has poisoned the world's financial system. Traditional ethics and morality in finance died under a fascist globalization of self serving greed and universal salesmanship. Fascism is when you are forced to look only at the ideological surface, told to believe, and told to not question or criticize. When that becomes the result of higher education, and no one blows the whistle, then education is fascist education.

Short of embedding government in finance, the only other alternative to restore rational sanity and trust, is to nationalize the banks.
That has an added advantage, because banks can generate reasonable, albeit small, profits which add up to very substantial amounts. Those profits from strictly regulated, nationalized activity, that cuts the costs consistent with the limitations on those profits, would still generate enough revenue to essentially do away with all income taxes for the largest part of the population. That is, that part of the population that is earning low to medium level incomes. Imagine, nationalized banks, and no income taxes. Honesty, trust, and rationality in banking, but with the advantage of doing away with income taxes. Alternatively that revenue could fund state and federal programs, cutting the deficit while providing better programs, but it amounts to much the same thing. It is a lot of money.

The other advantage of nationalized banking is that the rules are consistently applicable and understandable to all. That cuts the overhead costs. Added advantage is that the rules and methods for collection of debt gain much needed revision, serving financial and social justice in a way that private institutions cannot and never will do. More power to collect on debt, fairly, and more power to forgive debt in genuine hardship cases such as severe illness, natural disaster, victims of violence and crime, and other similar exceptions. The private sector knows little other than tactics of harassment and treachery, a bag of fiscal and psychological tricks of black mail, extortion and intimidation that government regulators and investigators have yet to properly delve into, because they are too busy chasing multi billion dollar fraud and have not yet had time to investigate the massive amount of institutional crime against the little person, where thousands or tens of thousands of dollars are being stolen, and where unfair or even what are or should be illegal practices are rampant, in a system gone too wrong for any real salvation.

Robert Morpheal

Anyone may copy, reproduce, distribute, this article in any form by any means, anywhere, and in fact is encouraged to do so.

[tama]

1. Let them crash

If after that you still think money is usefull and needed, create local currency. And no to taking interest. No interest.

[napi21]

2. What happened to Bank examiners? I worked for 2 banks in the past

years, and I remember how intense the atmosphere was when the "Fed Bank Examiner" was coming! Everyone was well aware of the damage that guy could do if he was unhappy with what he found! Someone must have either eliminated them, or severly defanged them.

[Citizen Number 9]

3. I don't know, Robert....

Trust seems to be slowly returning....

Credit markets seem to be thawing a little.
Stability seems to be slowly coming back.
Mortgages are becoming more available and rates have come down to a more reasonable 5.5%
Even the Consumer Confidence Index has bumped up a bit.

Government auditors were on the job before and during the crisis and it didn't seem to protect us.
More recently, the fraud apparently perpetrated by Madoff was completely passed over by the auditors

I'm not sure more auditors are the answer. Might make us feel better, but my experience is that if you get too many of them you are just giving jobs to people who aren't too good at that kind of work in the first place.

Not saying we don't need changes, but the best healer of trust might be simply giving things some time.

[BeFree]

4. Say what?

The profits from banks are enough to eliminate most income taxes on the poor if we nationalize those profits? Where do I sign on to that idea?

That has to be one of the best!! It is even better than nationalizing oil companies!

[mrreowwr_kittty]

5. If you are right, count me in! nt