The Market Ticker
Commentary on The Capital Markets- Category [Bank Reform]

I have to chuckle...

Too big to fail is likely to prove a costly epithet for the world’s biggest banks as regulators demand they increase holdings of debt securities to cover losses should they collapse.

The shortfall facing lenders from JPMorgan Chase & Co. (JPM) to HSBC Holdings Plc could be as much as $870 billion, according to estimates from AllianceBernstein Ltd., or as little as $237 billion forecast by Barclays Plc.

The solution to this is One Dollar of Capital, as I've propounded for years.  But that eliminates the ability of private banks to create inflationary conditions (including in specific asset classes - think asset bubble such as houses or the stock market) and returns the only control of inflation to actual government deficit spending (which, incidentally, is where the Constitution in the US says it resides!)

So why not do that instead?  Simple -- it's very profitable when you get to engage in these transactions.  What's worse, however, is when you get to engage in them with reckless abandon and then, when things go wrong, make someone else (everyone else) pay for it.

That is the legacy of 1929 -- and 2008.

And it's a legacy that none of these clowns will advocate ending, because asset-stripping you to your underwear (and perhaps beyond that) is exactly what they exist to do, and whatever bribery, blackmail and other tactics they employ aimed at the population and governments are all considered "acceptable" within their ranks.

The sad part is that you, dear reader (that is, collectively, "us") can put a stop to this -- if we demand it.

But we haven't and won't, will we?

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