The banks in this country have been labeled as "to big to fail." That is the reason for the bailouts of the various investing banks to help keep them afloat and "save this country." The truth is if the banks went under our economy would have collapsed, the world's economy would probably have collapsed as well. So why have we let them get this big and to the point where we can't let them fail even if they act in ways that are bad for our economy and citizens?
We had a similar problem in the early 1900s with big business being to powerful. John D. Rockefeller's Standard Oil, Andrew Carnegie's U.S. Steel and various other large and monopolistic companies of the time had so much power and were abusing it to the point where the government had to intervene. The government broke up these large monopolies and created a stronger economy because of it. There was now competition and competition is critical in a capitalistic economy.
I am proposing we do the same with these banks that are "to big to fail." We should split investing banks and loaning/savings banks apart. Keep our savings and home loans away from greedy investors hands. This will eliminate a lot of risk for the average citizen. Then break up all of the banks as we did Standard Oil and U.S. Steel into smaller entities to breed competition and and prevent the situation we find ourselves in. Currently, if one of the big banks fails, we have a major economic crises, if they are broken up into smaller companies and one fails the impact on our economy is smaller and less severe.
Watch the below Episode of 60 Minutes that talks about prosecuting Wall Street banks and executives for wrong doing, let us know what you think of their power, greed and selfishness.
To Watch:
http://www.cbsnews.com/video/watch/?id=7390540n
Further Reading:
http://www.cbsnews.com/8301-18560_162-57336042/prosecuting-wall-street/
We had a similar problem in the early 1900s with big business being to powerful. John D. Rockefeller's Standard Oil, Andrew Carnegie's U.S. Steel and various other large and monopolistic companies of the time had so much power and were abusing it to the point where the government had to intervene. The government broke up these large monopolies and created a stronger economy because of it. There was now competition and competition is critical in a capitalistic economy.
I am proposing we do the same with these banks that are "to big to fail." We should split investing banks and loaning/savings banks apart. Keep our savings and home loans away from greedy investors hands. This will eliminate a lot of risk for the average citizen. Then break up all of the banks as we did Standard Oil and U.S. Steel into smaller entities to breed competition and and prevent the situation we find ourselves in. Currently, if one of the big banks fails, we have a major economic crises, if they are broken up into smaller companies and one fails the impact on our economy is smaller and less severe.
Watch the below Episode of 60 Minutes that talks about prosecuting Wall Street banks and executives for wrong doing, let us know what you think of their power, greed and selfishness.
To Watch:
http://www.cbsnews.com/video/watch/?id=7390540n
Further Reading:
http://www.cbsnews.com/8301-18560_162-57336042/prosecuting-wall-street/