Posted on 03/25/2023 12:31:05 PM PDT by CFW
In this video, Professor Richard Wolff discusses being in Yale economics class with now-US Treasury Secretary Janet Yellen, who learned everything alongside him and betrayed it all.
The first question posed to Professor Wolff is what happened to the Silicon Valley Bank and he explains that it isn’t a special or unique occurrence but rather a common one. This is because banks decades ago proved to the American people that they cannot be trusted with something as important as money and the current Government is allowing this to continue.
We must remember that these banks are private capitalist enterprises and profit is their number one priority. Profit is their bottom line and they use the monetary system to make money. This means that they take risks, they take in the money from depositors, individuals and businesses, paying as little as they can for that. They then use this money to lend the depositors money back in the form of loans which they profit off.
(Excerpt) Read more at principia-scientific.com ...
Richard Wolff the Marxist?
“Richard Wolff the Marxist?”
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Yep. That very one!
And that's a bad thing - if you're some dumb commie. Should banks be 501c3s?
“Should banks be 501c3s?”
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Since our corrupt government has shown that they can’t properly regulate the private banks maybe they should be. It was the private Federal Reserve Bank is what has got us into this mess to begin with.
It was the private Federal Reserve Bank is what has got us into this mess to begin with.
No, it was Congress and The Resident that is the root cause of this mess, with out-of-control spending sparking higher inflation.
“banks are private capitalist enterprises”
Banks are private crony capitalist enterprises.
Crony capitalism is to capitalism what lions are to cute kitty cats.
The Fed controls the money supply and prints it out of thin air only to be backed by promises that they soon won’t be able to keep. The Ponzi is now out of control and the current system about to collapse. If the currency was backed by gold that would have restrained them from playing these games. Instead we’ve become the person who has been kiting checks and living high off the hog and beyond our means but eventually you have to cover those checks or go bust. That’s basically where we are now.
This guy is is a highly credentialed moron without common sense. His words prove his inability to see the problem glaring at him in the face.
He is correct in one regard. Profits are banks number one priority. I have no problems with that. Better put, a bank’s, and every business for that matter, number one priority is to maximize shareholder wealth. That is done by making profit and a bunch of other little things.
The thing this Keynesian a-hole has wrong is that banks take risks. There is no risk and no consequences when they get bailed out. We cannot privatize profit and socialize risk. That simply allows the woke, weak and incompetent to persist. It’s guaranteed that the execs from SVB and Signature will take a nice posh vacation and be reemployed at some other financial institution doing the same dumb chit. It is as bad as loser NFL coaches being recycled in coaching job after coaching job when everyone fully knows their record of failure will be repeated.
There needs to be institutional and personal consequences. These executives, at a minimum, should be barred from every working in the financial sector again. At maximum, they should be rotting in prison. The banks should be liquidated and creditors payed off in order provided by law. Depositors with accounts under $250k shall be made whole per the FDIC. Depositors with accounts over $250k: you just learned a very important and expensive business lesson. You need to learn to manage and ensure your assets are protected. There are very easy and well known ways to do that. Shareholders: sucks to be you. You chose poorly.
That’s why I own bank stocks and do my banking at a credit union.
This moron is an economics professor at Yale?
No wonder we’re in such trouble.
Is he really saying that the problem with banks is that they make loans and want to make a profit?
Bank loans are the economic fuel of the country. Without them, the economy would crumble.
To the extent that they make bad loans, more often than not it’s government policies that dictate that loans must be made to people or entities that have no chance of paying them back.
“The banks should be liquidated and creditors payed off”
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That’s just it if a systemically important bank is liquidated few if any creditors will be paid off and and the collapse of a systemically important bank would collapse the whole house of cards (the entire financial system implodes) just look at the quadrillions in derivatives they hold on their books.
Way back in the sixties, a family friend and economist who worked for the Feds told me that 60% of the money going around was “Checkbook Money”. In other words, it didn’t exist. We might be at 98.6 now. I dunno.
The End Of Capitalism Is Already Starting–If You Know Where To Look, 10/10/2019
Top Marxist Throws Socialism and Communism Under the Bus, Dec 12, 2019
Who is a Professor Emeritus at Yale.
This is the sort f thing I’m referring to. And remember this is just one bank.
Credit Suisse’s $39 Trillion Derivative Debt Poses Significant Threat to US Financial System.
According to a report by the Bank for International Settlement, this unreported exposure is 10 times greater than their capital, with an estimated $39 trillion of dollar debt held off balance sheets.
The quarterly derivatives report from the Office of the Comptroller of the Currency found that four US mega banks held 88.6% of all notional amounts of derivatives in the US banking system, with a total notional amount of $195 trillion.
https://www.themacrolist.com/p/credit-suisses-39-trillion-derivative
These systemically important banks all have exposure to each other and when one goes down chances are they all do.
I would hazard a guess that Yale economics professors have caused or economic collapse by teaching communism and socialism.
Things were so mismanaged at SVB, that AFS assets lost up to 60% of their value. They had to sell Held To Trade (HTT) and Held to Maturity (HTM) assets to keep the lights on because those securities were lesser loses compared to AFS assets. That didn’t happen overnight. SVB was technically insolvent back in September, but lazy ass regulators did nothing. KPMG literally gave SVB a clean bill of health just weeks before collapse. How did that happen and who got paid to write that report? Two weeks prior to total collapse SVB executives illegally sold millions in SVB stock - insider trading. Do you think they didn’t know what was going to happen?
Upon reflection, institutional and individual consequences need to be extended to regulators and KPMG.
As for the entire financial system imploding, there really is no risk of that. There are approximately 180 banks out of thousands at risk.
Quite literally, the vast majority of banks have been managing their assets and risks.
The impact of the 180 banks, if they fail, is only felt by hardworking Americans when those banks are bailed out. By the way, it’s hideous to think actions by Yellen and Powell are going to stop all of these at-risk banks from failing.
It’s very realistic to think that by the Fed opening it’s window that hundreds of billions of newly printed money is being pumped into the economy and sparking higher inflation. That will hurt you and me, and the same cast of incompetents will be made filthy rich without risk. Inflation doesn’t matter to them.
Here’s one more thing to think about: from 1980 to 1993 America had some 1,600 bank failures. Did you notice? Did it affect you? At that time no bank was considered too big to fail.
Without the Federal Reserve, that kind of overspending would be much more difficult. The Fed is the mythical Money Tree forest.
Bank owners and CEOs are not concerned with profit per se. They are concerned with their personal returns. They pay themselves immense bonuses and cash out their stocks before it is publicly known that the bank is busted. They know they will reach that outcome so the leverage their leverages until it all collapses and they come out of it much wealthier. With 0% reserve banking the whole industry becomes a forest of Ponzi trees.
Inflation matters to them. They make billions from inflation. The government benefits hugely in the short term because inflation is, in fact, a transfer of wealth from the holders of money to the government. 2% a year dose not mean that 2% just disappears. The government and the billionaires gain that 2%.
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