"If we ever needed a better reason to dismantle the TBTF banks,
certainly “LIBOR-GATE” is it.
Fraud, deceit, profiteering, greed all of which put millions of investors at risk
to benefit a few, it is tragic.
Not that smaller banks have no “crooks”, I am sure they do,
but those crooks don’t have the leverage of the Diamonds and Corzines,
the power in their greed and arrogance to damage millions of people
and impair the operation of our financial system, to make bets with billions,
trillions of dollars which can go wrong and do.
Their behavior forces central banks to pursue policies
(“rates too low for too long”)
which set us up for problems in the future, it’s not a “one and done” deal,
we have to unwind Diamond’s bets and the Fed’s!
Big government poses the same threats to us,
often in league with the big financial institutions.
History makes it pretty clear,
the larger the share of resources the government controls, the worse off the citizens.
More government spending and regulation
does not create more wealth and output for citizens.
Most of our Federal budget involves taking money from one citizen
and giving it to another,
not creating anything but political constituencies.
...there are plenty of “crooks” in the government where, once again,
the leverage over the quality our future is immense.
And it’s for sale.
Politicians buy our votes with promises they cannot pay for
and use that power to their benefit.
It’s a fraud, just like the financial institution frauds.
Our strength lies in numbers – lots of competitors,
none of which have the power to move or manipulate markets."
William C. Dunkelberg
Co-founder and Chairman of the Board of Liberty Bell Bank, Cherry Hill, N.J.,
and Professor of Economics at Temple University
No comments:
Post a Comment