Let Banks Fail

Everybody knows ... that the boat is leaking
Everybody knows ... the captian lied. --Leonard Cohen

Summary

Let banks fail (go bankrupt). Big banks. Why? Because bankruptcy destroys debt, and the big banks got themselves way too far into debt. Using borrowed money, they made trillion dollar bets in the global speculation casino. For years they won their bets, and reaped huge fees and bonuses. (Profits privatized.) Now their biggest bet of all has gone bust, and they want citizens to cover their losses. (Losses socialized.) Will we?

When small banks fail, they go into receivership and are taken over by banks with more responsible management, who assume their assets and liabilities. But no bank is big enough to take on the trillion dollar liabilities of insolvent big banks like Citi, B of A and others. Why should we? There are however plenty of responsible bankers who stand ready to step in once we've cleared out the bad bankers. But there's no reason to saddle them with the big banks losses either.

Article

This article summarized the problem quite well. Check all links there.

Previously collected news summaries are below. They are still relatively useful but so much bankster corruption, fraud & theft has been discovered since this list was made, that it is now quite out of date.

Older News

Background

Questions

Q: Aren't those banks "too big to fail"?

A: They've already failed. The only question is who will be dragged down with them in failure, their investors or your children? Other things which were "too big to fail": The Hindenberg, The Titanic, The Roman Empire, etc.

Q: Don't the banks have our economy hostage ? If we let them fail won't that collapse our stock market? Just look what happened after Lehman Bros. failed. Don't we have to give in to their demands, and give them however many trillions of dollars they ask for?

A: They may have the American stock market hostage, its true. But the stock market is not America. People only invest in the stock market money they can afford to lose (read the prospectus: "may lose value"). Any part of our economy dependent upon ONE company is inherently weak, and bound to fail eventually. The sooner we can clear our economy of these tumors, the healthier it will be. And in any case, is this how America deals with hostage takers?


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