IT CAN NOT HAPPEN TO ME. GUESS WHAT? IT WILL!!!
Many the soothsayers and economists are predicting a perfect financial storm, but none, to my knowledge, are writing about the solutions to our dire problems. This book has been a meager attempt to provide an affirmative future for our offspring. This is just a meager start, but remember to keep it simple and pure in thought word and deed. (RD)
CHAPTER 21 PSALMS 50: 22-23
CONCLUSION: ITS’ THE BANKS
It is the Almighty God that creates wealth and takes it away when you abuse it. Just peruse the Old Testament and read about all the wealth King Solomon had. By the time Jesus was born the Jews were dirt poor.
Whether you believe in the Bible or not there are lessons to be learned from mistakes made over 2,500 years ago. Abuse your wealth by greed, piggishness, vanity, insolence, scorn or political corruption in any form and the almighty will eventually dethrone you.
The stock market crash of 1929 and precursor to the Great Depression worldwide can be attributed to one faulty or bogus principle. Easy credit! Anyone could purchase a security by just putting down 10% of the purchase price. This was done in order that major players had someone to complete their trade with. There were all kinds off “stock pools” that were created to con or swipe the unprotected. Today they are called Hedge funds and bankers.
When banks or bankers consider themselves above the law it is time for the legislators to change the rules. 2011-2012 has been rife will all kinds of currency crises. Most all the solutions are about saving the banks. Bankers in turn testify they are trying to save jobs. In reality it is THEIR jobs they are trying to save – not ours.
So everyone onMain Streetstarted buying stocks. As long as the market was going up everyone was happy.
Lurking behind the curtain are arrogant billionaires pulling the strings of their puppet politicians. When bankers control the economy along with a socialist government then eventually everyone looses. There is a saying, when the politicians sleep at night, the economy grows.
Presidents #43 and #44 have blown the recovery. The right choice was to allow bankruptcies to take their normal course. Joseph Schumpeter’s law of Creative Destruction would have created many new jobs and industries.
If #43 had delivered a whopping sum of $250,000 -$300,000 to every adult that paid an income tax the banks would be solvent and awash with cash. The public would have spent the monies where it is treated best creating businesses and jobs.
Now we face a herculean task of revamping the worldwide financial system. Those countries do not have a free economic system and should be avoided, because major decisions are made for political instead of economic reasons.
Every major bank should be downsized. Trust departments and brokerage departments removed from the bank and separate companies formed as stand alone or combined with other former trust departments. Banks will not have any trading departments, but will be able to buy and sell from their own account through a third party- preferably a new brokerage firm/
Banks shall not have any debt or preferred stock. Banks have the Federal Reserve privileges which we as citizens do not enjoy.
Banks will be limited in size with grouping of A, B, and C. A banks will be regional, maybe based upon the Federal Reserve districts. Their salaries will have a maximum cap and will change depending upon the performance of the bank. Department heads and employees will have the same incentive. These banks could trade as a public security providing the Federal Reserve owns 51% .
When these banks are bidding for major national or international projects then they can form syndicates for business. One bank could be the lead or major underwriter with each bank promising so much monies if their bid is successful.
“B” banks should be limited to state business and all be privately held by the federal reserve. They should be able to form syndicates for interstate business but not national.
“C” banks are local banks that will be non public holdings. They will operate in small towns and be allowed to compete for business where a community has only one bank. Communities with a single bank tend to stagnate in economic growth.
The board of Directors of these banks shall not have any loans of any kind. They may have a checking and savings account. They shall be paid a friendly stipend to encourage participation on the board. Any fines , or censures, or losses in the bank will also be deducted from their stipend. They shall not have any margin accounts.
Any member of a bank that commits a fraudulent act shall be fined and punished along with his or her entire family. This should include all assets of the entire family.
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