I love this.
Credit unions and small community banks claiming they did nothing to help bring about the housing crisis.
Again, you have probably already read my book, but let me explain to you about credit unions and small time banks during the late 2000's.
They were wanna be's. They came to the party too late, bought in at the worst possible time, and whatever filfth and crap that was turned down by real banks, fell on the floor for these bottom feeders.
The WORST loans I ever saw made were by credit unions and community banks.
And if Frank-Dodd wipes them out, so be it, too bad, boo-freaking-hoo. It would be a good first step to passing the stool out of the banking system once and for all that caused this mess.
The same over dose of regulations, are killing off a lot of mid-sized brokerage firms. I think it is important to have a large variety of banks and investment houses. Instead the bigger investment houses like Goldman, are controlling an even larger share of the market.
ReplyDeletePeter Schiff has also commented on how devastating all these new financial regulations, have been to the financial industry.
Lets face it, the USA has a strangulation level of rules and regulations, in almost every industry.
Ideally this regulation would be used to eliminate the bottom feeders, forever purging corrupt and inept bankers from the system forever. Then the regulations rescinded with a less infected banking system.
ReplyDeleteReading that post I could have sworn you were a 99%'er!
ReplyDeleteCaptain, you of all people should know that you don't have the foxes running the hen houses. Dodd-Frank is not going to do anything because the very politicians behind this mess are the ones making the rules. The answer is not Dodd-Frank. It's repealing the Community Reinvestment Act, Dodd-Frank, Sarbanes–Oxley, whatever is left of TARP (probably an IOU from the Bush's cronies and the Obama campaign) and yes...the Federal Reserve should be repealed. For every major financial crash, the Federal Reserve has either: A) been the cause of it like in the case of the Great Depression and/or B) failed to do its primary function which is to invest capital in banks when they are facing bankruptcy...we needed the Congress to inject $700 Billion...so there is no point to the Fed any more, if it can't do the job it was created to do.
ReplyDeleteSo we follow bad and ineffective regulation and regulators that failed to do their jobs up with even worse regulations that fail to prevent the problems from recurring.
ReplyDeleteFrank and Dodd should be in prison.
And we bailed out the large perpetrators while we put the screws to local banks that weren't bailed out.
Then the frickin' crooks that ran Freddie Mac and Fannie Mae get $100 million dollar + bonuses.
Granted, there are a bunch of poorly run small banks and credit unions which fouled up often and badly, but these guys didn't take the whole freakin' economy down. A lot of those banks have croaked or been taken over and there will be more.
The big banks should be broken up so if they blow up, they don't take the economy down with it.
Where's a Theodore Roosevelt when you need one?