Consolidation of Banking

I've been talking about economics and what is happening with banking for a while now. The fact of the matter is that there is a great consolidation of banking that has been initiated with this 'banking crisis' that has been in effect lately. Although the mainstream press would have you believe that it is the result of stupid, mistaken, idiotic bankers who are making errors, this is not plausible.

Virtually all of the people who are in charge of banks, banking and government policies are highly credentialed (i.e., have Ph.D.'s and other college degrees from mostly Ivy League colleges). This effectively negates the assertion that these people do not know what they are doing. I say that not only do they know exactly what they are doing, but that they are succeeding at what they have already planned to do.

Let's look at this logically. The banks made massive amounts of money from lending all through the creation of the 'Subprime Banking Crisis' before it was a crisis. This was all made possible by their great efforts (that eventually succeeded) to get the Glass-Steagle act repealed. This law was passed after the Great Depression of 1929 to prevent banking organizations from performing standard banking operations and investment banking simultaneously to minimize 'moral hazards' (i.e., a euphemism for stealing, plunder, profiteering and other scandalous behaviors).

So the banks (along with their paid cronies in government) made obscene amounts of money from this. This is in addition to their realizing astronomical profits from derivatives trading, which is mostly done 'off-the-books' because there is no standardized, regulated market for derivatives. They are virtually all customized transactions, and are therefore not regulated, not public and are difficult to value. It's like basically being able to stack the proverbial Casino in your favor.

But the ugly realities of making bad loans and continually making excessive bets have led to major structural problems in banking. So when the 'cookie jar broke' and the banks were about to all go bankrupt, they pressured their friends in D.C. to help them out, and that's exactly what they did. We know it as the TARP program, which basically amounts to 'corporate welfare'. Instead of the many trillions of 'investments' being valued at their actual market value, the government bailouts allowed the banks to keep their face values so that the banks would not experience actual losses. They were allowed to maintain the facade of being solvent, although the truth is that they are all technically bankrupt.

So for all of this, the People of the United States were given the bill for all of this. The payment for this will be through layoffs, higher taxes, less services, the collapse of local and state governments, inflation and/or deflation that will greatly erode the wealth of average people, and possibly totalitarian fascist police state provisions to keep the masses from holding the government and corporate people responsible for these events responsible.

I know I've covered a lot of ground in these few paragraphs, but I didn't want to overwhelm you with a lot of technical jargon that may confuse you. But I have found a great article that goes into great depth about this situation. It is lengthy, but if you can absorb the content and meaning of this article, you will have a much better understanding of where the economy is, and what is really going on in the world. You can forget the crap that they're feeding you on MSNBC and similar financial 'news' outlets because that drivel is merely designed to keep the sheep calm while they are being fleeced. This is some of the most important information that you can get for yourself, your family and your country. It will affect every facet of your life, and the lives of the people you know.

You may think I'm crazy, but you owe it to yourself to step outside of the corporately-controlled media and do some thinking for yourself. Running multi-trillion dollar budget deficits just isn't sustainable on a long-term basis. It appears to me that those who control governments and economies are purposely running all of the world's economies into the ground so that they can institute this One-World Government and One-World Currency. The old saying is that 'nothing happens by accident in politics', and you can best believe that with trillions of dollars in the balance, there are forces working to control them and gain as much of that loot as they possibly can. Don't be naive. Face reality and deal with it, because it will definitely deal with you one day! It has a nasty habit of popping up at the most inopportune moments.