Hence banking laws!!!!
The idea that a bank can do whatever they want with the money we in trust them with seems to violate the"trust" on which the relationship was based in the first place. Ironically many banks have the word "trust" in their names. In 1999 the Glass-Steagall Act was repealed by congress. One of my favorite quotes from back then has to be this one:
"I think we will look back in 10 years' time and say we should not have done this but we did because we forgot the lessons of the past, and that that which is true in the 1930's is true in 2010"
Senator Byron L. Dorgan, Democrat of North Dakota.
*Insert fart noise.
This single act of Congress granted commercial banks privileges to become investment and insurance companies. It also allowed insurance companies to get into investment and commercial banking. Corporations that had no prior business experience in these areas of finance were allowed to use their customer's money that they were entrusted with to "diversify" by speculating in other financial industries.
The stated intent was to increase competition which would supposedly improve customer service and reduce fees. In reality... More competition caused increases in fees and decreases in customer service. This really messed up everything from retirement funds to health insurance and encouraged more companies to neglect customers and focus on servicing their shareholders. This single act set the stage for the current meltdown of the financial industry. It didn't cause it. It was caused by good old fashion greed, people taking advantage of these law changes. When this act was passed, the flip switches were taken off of our economic reactor and the result was a Chernobyl style meltdown. Now everyone is dealing with the fallout; swaths of abandoned homes and businesses sitting being scavenged until the fallout clears and life returns to "normal",
If we want to keep using this economic system called capitalism, a system where economic value is based on trust and stability of markets, we must have sufficient regulation to moderate risk.
Investments are not seen as sound when there is too much risk. It is ironic, the proponents of deregulation claimed that high-risk, top heavy economic growth will trickle its way down to the bottom of the economy. The economic benefits did exactly that, trickle down. Just trickle. Just enough to keep most of us preoccupied and hopeful. However, now that it has all broken down, those who took the most risk, saw the greatest financial boon and were shielded from the losses associated with those risks. Now those losses, that trickled down have become a torrent.
Beyond a political fix to the economic reactor, we need to look at what we, as non-corporate "persons" can do to fix this. We have the ability to take the power out of the hands, of those who screwed this up so bad. We the People need to be smart. We the People need to be tough. We the People need to be patient. This will take time.
Vote with your feet, leave your big bank and use a local credit union. I did a lot of work for a few large commercial banks in the "90s. I made my money in IT back then preparing for the dreaded Y2K. What I learned was that the whole banking industry was a mess. When the deregulation passed in '99 I decided I would keep my money out of the hands of commercial banks. One mortgage trader said to me"We need to get on this and make money off it before it blows up in everyone's face." Since then, I have kept my money in credit unions whenever possible. Don't just go out and pick any credit union, do your research. Ask their customers what they think. Some act just like the commercial banks. Be a smarter more aware consumer. It's your money. Remember that. Another idea that has been recycled by the #Occupy movement has been to buy local and use small businesses. Give your money to small and local businesses. This isn't always possible, especially for those of us with limited funds. I often find myself trading services for goods or other services. Find out what you can do and work out an exchange. Do what you can to take the economy out of the hands of the intoxicated sociopaths that haven't been doing a good job of running it for you. If you don't feel like you have a good enough idea, look around. There are thousands of people with good ideas. Not everyone can implement their ideas alone. Offer to help, be part of something bigger.
I tell you this again.
Occupy Yourself!!!
It is time to personalize the Occupation.
Bring it home with personal action.
Change the world by changing your life and what you can put your hands on.
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