The “too big to fail” concept has always seemed absurd to me, but to watch it play out in the aftermath of the 2008 banking debacle was simply too much to bear. I highlighted my concerns in my May 26 blog article titled, “Plunder, Pillage, Get Out of Jail Free, Then Pass Go and Collect $200.” I brought a number of “minor” events to light, regarding the ongoing pass or slap on the wrist being doled out by our justice system, for what others receive jail time in other industries and circumstances. But I made it very clear, that those involved should be made to serve those they affected, which is a far cry from the “thanks and have a nice day” golden parachutes that were instead approved by our political and justice systems, before the final bill was handed to the American Taxpayer.
Ron and Rand Paul have been vocal about these concerns for decades and they’ve effectively been ignored and sequestered to the crying room. So it was good to finally see someone achieve a large audience and focus attention on the system responsible. Check out this well-received outburst from a former member of Parliament, who served for ten years and was able to quickly and concisely express what should be obvious and more than disconcerting to anyone willing to listen. https://www.youtube.com/watch?v=NeJpQQt_b8c Moreover, anger and outrage is only the first phase of the process necessary to create change. The rules are and have been in place. The simple solution is to apply them equally, consistently and unilaterally.
Regular citizens can’t loan money they don’t have. Why can banks do it? Citizens can’t print money when they run low. Why can the Fed? Citizens aren’t too big to fail. Why are banks? The average citizen is required to take full responsibility for their mistakes, why aren’t politicians, the Fed and banks (central and retail)? Considering that banks have consistently proven themselves not to be trustworthy, why are they now more than 25% larger than they were prior to the 2008 collapse? And why are they investing to an even greater degree in dangerous derivatives that were a big part of the 2008 collapse.
Is it really too much to ask that we learn from our mistakes and then take corrective action? Democrats think we need more government involvement, management and oversight. I disagree. The Republicans think we need less government, free markets and unbridled corporations that take direction from market demand. I disagree. What we need is a serious application of intelligence, accountability and honesty, three things seriously lacking from every corner of the American economy right now. Like I said before, if we can’t have what we need, then why not elect a Madoff/Ponzi third-party ticket. There’s no doubt we’d be screwed from the start, but at least there wouldn’t be any surprises.