Thursday, April 19, 2012

Screw the Banks

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I've had it with banks.

It's OK if the Fed or some other central bank offers a helping hand when a bank faces a rare liquidity crisis due to circumstances beyond its control. But when banks create an interminable economic catastrophe through chronic insolvency resulting from unfathomable incompetence or criminal insanity it's time make the bankers pay.

That time has come. It is time for governments to expropriate every bank in need of a bailout, fire the CEO and other top officials, kick out the useless directors, which is to say all of them, recapitalize as necessary and inform the shareholders that due to the foolishness of their investment, the value of their holding is precisely zero.

The high street banking operations should be retained in public ownership indefinitely, while the venture capital operations are sold on the understanding that they will never receive a government bailout and will be broken up by the government if they come anywhere close to being too big to fail.

In addition, we need a new system of money creation. Allowing private institutions to create credit without limit led to the present disaster. In future, private institutions wishing to offer credit must first raise the capital, either privately, or by borrowing from the central bank. In that way, the central bank, which must be nationalized, will have firm control over the money supply and can prevent credit bubbles such as have disrupted the World economy since the turn of the century.

The following links provide the evidence, if you need it, of the criminal complicity of the New World Ordure governments of the EU and the US in the current unending banking crisis.

ZeroHedge: Video Explanation Of How The ESM Is Europe's Uber-TARP On Steroids

Golem XIV: Plan B – How to loot nations and their banks legally

 Nigel Farage: The EU Heading for Economic and Democratic Disaster

Mish: IMF Chief Jackass Calls for Taxpayer-Funded Bank Recapitalisations to Avoid Painful Deleveraging; Mish Says Fire the Parasites and Disband the IMF

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