[ExI] dirty secrets of capitalism?

[Dylan Distasio]

On Tue, Oct 10, 2017 at 6:23 PM, William Flynn Wallace <foozler83 at gmail.com>
wrote:

> From The Week:
>
> by Rana Foroohar  NYT
>
> Lending to Main Street (not sure I understand all of the metaphor)
> comprises 15% of the business of the big NY banks.  The rest 'exists in a
> close loop of trading' and corporate deals that works solely to enrich the
> already rich.
>

Main Street is the real economy as opposed to Wall St.  After working for a
large investment bank for over a decade, I have come to the conclusion that
they need to be broken up and the Glass Steagall Act needs to be reinstated
walling off investment banking from private lending.  Once they have been
broken up into smaller entities, they should be allowed to fail if they
take excessive risk.  The FDIC will protect most account holders in terms
of deposits, and the ones who have to worry about exceeding the maximums
are savvy enough to work around it.

The market was not allowed to clear after the financial crisis (with the
exception of Lehman Brothers).  Central banks (Federal Reserve and others)
have taken away any worries over risk or failure.  If banks had to own
their risk, things would be significantly better.  Over the course of most
US history, this was how financial markets worked.


>
> Do we even have local banks any more, so that we can take our money away
> from the big banks that use our money to play games with it?
>

Yes, there are still plenty of regional banks that do traditional lending.
I encourage you to seek them out and reward them with your business and
deposits.

>
> Does this dispel the myth that if you raise taxes on the rich you hurt
> their ability to create jobs, trade, factories, etc.?
>

 I am of the opinion that all taxes are collected staring down the barrel
of a gun.  They're expropriation by another name.  The less of them the
better...
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