Jamie Dimon, head of JP Morgan, personally telephoned individual lawmakers to urge them to vote for the repeal of Dodd Frank. This is getting really out of hand. Let us make this very clear. Besides the fact that these banks LACK the models to prevent them from blowing up every single time running to government with their hand out asking can they spare a trillion, the sheer fact that they can make heaps of money from trading means they are NOT lending. Spain converted itself from the richest nation in Europe to the poorest by doing precisely this short-term type planning.
Spain did not invest in developing its country. Spain squandered all its money living high on the hog, as they say. The saying was a French man knew how to unload ships rather than a Spaniard. The banks are traders not lenders.They are trading with YOUR money. Profits are their’s – losses are taxpayers. Allowing them to be derivative junkies means they do not do what they are supposed to be doing – lending money that expands jobs and builds the national economy.
The Republicans are simply counting their donations for political campaigns. This will be the downfall of the Republican Party come 2016. The banks will blow up AS ALWAYS, and the people will get outraged because at G20 they said the depositor has to pay for the next bailout – bail-ins. There is no disclosure mandated. There should be a warning label on bank accounts – THIS BANK SPECULATES WITH YOUR MONEY. Hey – borrow this regulation from the FDA regulating food.
We can see this in the prelude to the political crisis in 2016. The banks will blow up – they are far too cheap to build real models for their view is always the same. Why spend money on models when you can buy the votes when needed?
Elizabeth Warren – Scream as loud as you can on this one. Sorry Hillary – you repealed Glass Steagall. This is all your fault.
