What is the system? It revolves around the banks, the system is built on the power of the banks, so it can be destroyed through the banks.
Sentiment: NEGATIVE
The process by which banks create money is so simple that the mind is repelled.
Ours is a government of checks and balances. The Mafia and crooked businessmen make out checks, and the politicians and other compromised officials improve their bank balances.
You shouldn't be trying to create a system where no bank fails, but you should be creating one that catches a bank and allows it to fail without impacting the financial markets.
I am afraid that the ordinary citizen will not like to be told that the banks can and do create and destroy money. And they who control the credit of a nation direct the policy of governments, and hold in the hollow of their hands the destiny of the people.
Banks hold deposits and savings entrusted to them by individuals, by businesses, by governments and by central banks. They put that money to work, helping people to buy homes, for example, or lending to businesses to invest in expansion.
We don't have a good legal justification for breaking up the banking system. But if I could wave a magic wand, I'd break up the banking system.
What the banking system needs is creditors who monitor risk and cut their exposure when that risk is too high. Unlike regulators, creditors and counterparties know the details of a deal and have their own money on the line.
If a bank's too big so that it can't fail without hurting our economy, well then, it's too big.
People get into debt head over heels because banks make it so easy to do so. Then the banks come along and act like these people who can't or won't pay their bills are the dregs of society.
The failure of one regional bank, assuming it is following a traditional model, will not threaten the entire system.