April 29, 2010

The Ax

Financial reform is the focus of the country's political attention at the moment and I have to say it's about time. It's been nearly two years since the country's economy began unraveling and now that things have somewhat stabilized it's time to ensure this doesn't happen again for another hundred years or so. Now that Republicans have stopped standing in the way of the proposed legislation to further regulate Wall Street we're likely to get yet another piece of legislation that will change the way the country works for years to come (which I'm happy with). My concern is that the legislation won't go far enough. Over the last couple of decades laws were changed which allowed banks to grow larger and larger and left us with banks that were "too big to fail". I want to see those laws restored. I want limits on how many accounts individual banks can hold. Local banks are just more stable and should be supported. Chances are more money will be reinvested into the community with small banks as there isn't the same pressure to show profits for shareholders. We need some old fashioned Theodore Roosevelt style monopoly smashing here. Maybe, an ax would be a little to harsh. Slicing them with a scalpel might be smarter. Every year the maximum number of accounts a bank can hold could drop by 2% for the next ten years. After ten years we get banks that are much more manageable and less in danger of collapsing. Corporations have gotten way too big in this country and if we don't prevent them from becoming monopolies we'll be in peril indefinitely, just waiting for the next bubble to burst.

All of my money (what little there is) is invested in a community bank. I hope you consider taking action on your own and moving your money to a community bank, it saves the country and you can still get totally free checking.

11 comments:

  1. I swear I'm just going to close my account and hide all my money in my mattress.

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  2. I agree with you. Action definitely needs to be taken to prevent all of this again. I have my money in a community bank too. When things get too big they spiral out of control. The lil guys are more manageable. I hope we all have learned something from the past few years. =)

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  3. I'm from Canada. We only have a handful of banks to choose from and their all federally run. I'm not expert on our banking system, but so far it seems to be doing well. ie: we have federal regulations that prevented the type of bloated mortgage sale that went on in the states prior to the collapse of the housing market--stiffer qualification requirements.

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  4. Yes yes yes! I think people should put their money in their damn house. I'm not gonna get all political and use big words but.. What you're saying is definitely a serious issue.

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  5. Yep...my green is in a local community bank as well. I got sick of all the fees and being nickel & dimed to death with the national banks.
    I like the mom & pop places...whether it's my bank or the local deli or pharmacy. It feels more personal.

    Plus, I've got that stash in my sock drawer. Wait. Did I say that out loud?

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  6. At least the economy in Australia is better than it is over there.


    I can kind of understand why old people put all their money in their mattresses.

    It makes sense.

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  7. I am hiding my money in a pot at the end of a rainbow. Will it be safe there? LOL

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  8. We have most of our money in our two homes. I don't trust the banks. You are always up on the political issues, that's why I love reading your blog.

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  9. Impressed! Old fashioned shop local ... makes sense to me.

    I'm following your advice for sure! Once you've sorted USA's probs, come to GB 'cos this country is in a shambles.

    Seriously, your post has given me hope and I am smiling.

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  10. I don't want to start my anarcho-syndicalist rant here (I will leave that for another blog) but you are heading in the general direction of my political and philosophical leanings.
    Some believe that capitalism needs to be left the fuck alone, others believe that it needs tweaking, whilst others maintain that it needs a complete overhaul. Guess where I stand?
    Practically speaking though, banking institutions require muzzling as the hunt for a finite concept called wealth increases.
    I like what you suggest, but let me also add that banks are made up of investors/shareholders. They too need to think of the bigger picture and rein in their gluttonous appetite for individual wealth.
    Hope that makes sense to y'all.
    Good thoughts my man!

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