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bballcrook21
Posts: 4,598
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8/18/2016 4:08:19 AM
Posted: 1 year ago
The bailouts 7 years ago proved that our banks had become so large that we couldn't let them fail. They'd become "Too Big To Fail." The congress responded by passing a massive new regulation bill, the Dodd"Frank Wall Street Reform and Consumer Protection Act, to deal with the problem. The result?

Too Big To Fail has gotten worse. And now we have "Too Small To Succeed." The regulations made it impossibly difficult for small community banks to exist. The little guys simply can't compete anymore. We have more and more big banks. Loans are determined by computer models and algorithms instead of real people who live and work in our community. And, as the graph shows, Too Big To Fail has gotten much worse.

SOURCES: http://online.wsj.com...

https://research.stlouisfed.org...

https://research.stlouisfed.org...
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
NHN
Posts: 1,219
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8/18/2016 9:03:24 AM
Posted: 1 year ago
At 8/18/2016 4:08:19 AM, bballcrook21 wrote:
The bailouts 7 years ago proved that our banks had become so large that we couldn't let them fail. They'd become "Too Big To Fail." The congress responded by passing a massive new regulation bill, the Dodd"Frank Wall Street Reform and Consumer Protection Act, to deal with the problem. The result?

Too Big To Fail has gotten worse.
Interestingly enough, Chris Dodd (D-CT) chaired the Senate Banking, Housing and Urban Affairs Committee 2007-2011, first overseeing the crash and then "facilitating" the aftermath. Meanwhile, Barney Frank (D-MA) chaired the House Committee over the same time span, doing the exact same thing. The two worst legislators of the 2008 crash got together and wrote a bill that will hurt the economy for decades.
I am fascinated by the idea that our civilization is like a thin layer of ice upon a deep ocean of chaos and darkness.
--Werner Herzog
bballcrook21
Posts: 4,598
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8/18/2016 4:09:40 PM
Posted: 1 year ago
At 8/18/2016 9:03:24 AM, NHN wrote:
At 8/18/2016 4:08:19 AM, bballcrook21 wrote:
The bailouts 7 years ago proved that our banks had become so large that we couldn't let them fail. They'd become "Too Big To Fail." The congress responded by passing a massive new regulation bill, the Dodd"Frank Wall Street Reform and Consumer Protection Act, to deal with the problem. The result?

Too Big To Fail has gotten worse.
Interestingly enough, Chris Dodd (D-CT) chaired the Senate Banking, Housing and Urban Affairs Committee 2007-2011, first overseeing the crash and then "facilitating" the aftermath. Meanwhile, Barney Frank (D-MA) chaired the House Committee over the same time span, doing the exact same thing. The two worst legislators of the 2008 crash got together and wrote a bill that will hurt the economy for decades.

As if legislation was to "help" anything. If the economy is doing perfectly, people are making money, there is low unemployment, etc. then there is nothing for government to do, and that's an issue for those in power.
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
NHN
Posts: 1,219
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8/18/2016 11:50:35 PM
Posted: 1 year ago
At 8/18/2016 4:09:40 PM, bballcrook21 wrote:
As if legislation was to "help" anything. If the economy is doing perfectly, people are making money, there is low unemployment, etc. then there is nothing for government to do, and that's an issue for those in power.
That's the thing, these shady legislators fear market competition; they seek the equality of outcome, not the equality of opportunity.
I am fascinated by the idea that our civilization is like a thin layer of ice upon a deep ocean of chaos and darkness.
--Werner Herzog
bballcrook21
Posts: 4,598
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8/19/2016 12:08:29 AM
Posted: 1 year ago
At 8/18/2016 11:50:35 PM, NHN wrote:
At 8/18/2016 4:09:40 PM, bballcrook21 wrote:
As if legislation was to "help" anything. If the economy is doing perfectly, people are making money, there is low unemployment, etc. then there is nothing for government to do, and that's an issue for those in power.
That's the thing, these shady legislators fear market competition; they seek the equality of outcome, not the equality of opportunity.

Equity is more desirable for them than success of those who try
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
dc0404
Posts: 282
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12/23/2016 4:02:13 AM
Posted: 7 months ago
At 8/18/2016 4:08:19 AM, bballcrook21 wrote:
The bailouts 7 years ago proved that our banks had become so large that we couldn't let them fail. They'd become "Too Big To Fail." The congress responded by passing a massive new regulation bill, the Dodd"Frank Wall Street Reform and Consumer Protection Act, to deal with the problem. The result?

Too Big To Fail has gotten worse. And now we have "Too Small To Succeed." The regulations made it impossibly difficult for small community banks to exist. The little guys simply can't compete anymore. We have more and more big banks. Loans are determined by computer models and algorithms instead of real people who live and work in our community. And, as the graph shows, Too Big To Fail has gotten much worse.

SOURCES: http://online.wsj.com...

https://research.stlouisfed.org...

https://research.stlouisfed.org...

Yes, too big to fail. It happened back in 1998 as well with LTCM, they were bailed out in a consortium led by the Fed, one of the main differences is part of the deal is their executives were removed. In the 2008 debacle, many of those bailed out executives got bonuses. There were two entities that did fail in 2008, Lehman, and Bear Stearns where interestingly enough, Bear Stearns removed themselves from the 1998 consortium and Lehman lowered their contribution in the bail out, where each of the consortium members put in 250 million to bail out LTCM. Is going to happen again...?... 1998, 2008, when? This time the banks are even much bigger and too big to fail, primarily because of easy money, derivatives and off-balance sheet swaps. it is going to be ugly. They are too big to fail, but I think next time they will fail because the Fed is out of options.
John_C_1812
Posts: 570
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12/23/2016 4:46:38 AM
Posted: 7 months ago
A question addressing too big to fail.
At what point does plagiarism become counterfeiting? There are outside forces being used against the Banking and Fanatical Institutions. It started out as a way to control inflation. The bail outs are more like cost shift being placed all the way back to a possible source of spending.
Counterfeiting without paper Notes is a strategy like murder without the body. If you can"t see it, you don"t have to know you"re doing it.
BillSPrestonEsq
Posts: 227
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12/23/2016 4:59:11 AM
Posted: 7 months ago
At 8/18/2016 4:08:19 AM, bballcrook21 wrote:
The bailouts 7 years ago proved that our banks had become so large that we couldn't let them fail. They'd become "Too Big To Fail." The congress responded by passing a massive new regulation bill, the Dodd"Frank Wall Street Reform and Consumer Protection Act, to deal with the problem. The result?

Too Big To Fail has gotten worse. And now we have "Too Small To Succeed." The regulations made it impossibly difficult for small community banks to exist. The little guys simply can't compete anymore. We have more and more big banks. Loans are determined by computer models and algorithms instead of real people who live and work in our community. And, as the graph shows, Too Big To Fail has gotten much worse.

SOURCES: http://online.wsj.com...

https://research.stlouisfed.org...

https://research.stlouisfed.org...

It seems to me that much of the banking system is held up by property values. The problem is that if unemployment stays high demand for housing should be low. This of course lowers the value of homes and eventually puts banks in the red if they get low enough. To avoid this the interest rates have been kept low to keep the demand up, and keep unemployment down essentially building a bigger bubble to replace the last one. A bubble that now the solvency of banks relies upon. So it seems we must keep interest rates low. But for how long can we do this? if inflation starts to become a problem the bubble will have to be 'popped' again by raising rates and where do you go from there? I think that if we can cut government waste and intervention now we can generate enough wealth to maybe catch up. Otherwise this whole kicking the can down the road stuff is going to end badly. Eventually debts will become so high they'll be solvency issues.
dc0404
Posts: 282
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12/24/2016 3:10:58 AM
Posted: 7 months ago
At 12/23/2016 4:59:11 AM, BillSPrestonEsq wrote:
At 8/18/2016 4:08:19 AM, bballcrook21 wrote:
The bailouts 7 years ago proved that our banks had become so large that we couldn't let them fail. They'd become "Too Big To Fail." The congress responded by passing a massive new regulation bill, the Dodd"Frank Wall Street Reform and Consumer Protection Act, to deal with the problem. The result?

Too Big To Fail has gotten worse. And now we have "Too Small To Succeed." The regulations made it impossibly difficult for small community banks to exist. The little guys simply can't compete anymore. We have more and more big banks. Loans are determined by computer models and algorithms instead of real people who live and work in our community. And, as the graph shows, Too Big To Fail has gotten much worse.

SOURCES: http://online.wsj.com...

https://research.stlouisfed.org...

https://research.stlouisfed.org...


It seems to me that much of the banking system is held up by property values. The problem is that if unemployment stays high demand for housing should be low. This of course lowers the value of homes and eventually puts banks in the red if they get low enough. To avoid this the interest rates have been kept low to keep the demand up, and keep unemployment down essentially building a bigger bubble to replace the last one. A bubble that now the solvency of banks relies upon. So it seems we must keep interest rates low. But for how long can we do this? if inflation starts to become a problem the bubble will have to be 'popped' again by raising rates and where do you go from there? I think that if we can cut government waste and intervention now we can generate enough wealth to maybe catch up. Otherwise this whole kicking the can down the road stuff is going to end badly. Eventually debts will become so high they'll be solvency issues.

Were in a tough spot Bill. Interest rates will not stay low forever, the invisible hand, and the economy will have its way at some point. Then when interest rates rise, we are then in a position where we cannot service the debt (we being the US, Fed, Treasury, etc). To service the debt at higher interest rates is going to cost you and I a lot Bill, or we default, and the world crumbles and the US will take everyone down with it based on dollar prominence. It is going to end badly I fear. After another bubble burst, QE is not going to be enough.

DC