Wednesday, December 21, 2011
"A Deeper Crisis is Coming, We Must Control the Banks": Public Banking System in America
We'll never Nationalize the Banking System in America, thats a Socialist Pipe Dream that Progressives will never accomplish. Nor should we because the Federal Government doesn't do a very good job of what its runs now. Besides the Banking System represents too much of the American Economy so that would never happen. Give the Feds the Banking System one day, then they can get the Auto Industry the next day, Airline Industry the next day and so on. Making the United States look like the Soviet Union which never had a very strong economy. Despite its population, land and Educated Class but we can have a much better Banking System in America. If we first regulate it better by not allowing banks to become "Too Big to Fail" in the first place. By forcing them to sell off assets at Market Value once they reach a certain size. Forcing banks to purchase Bankruptcy Insurance so they would never have to be bailed out by Tax Payers. Instead banks would be forced to pay for their own mistakes not Tax Payers. We could even have a Non Profit Banking System to go along with For Profit Banking System. Not run by the Federal Government they would be Independent, Semi Private and Non Profit. Oregon is looking right now at how to accomplish this which is the way to go. Instead of the Federal Government trying to force it down the throats of people and forcing them to use a Public Bank.
If we had a Banking System that first saves the American Banking System so we have no more AIGs in the future. No more "Too Big to Fails", by regulating it properly, not under or over regulating it. And yes expanding Freedom of Choice which is one my favorite terms as a Liberal Democrat. With a Public Banking System not run by the Federal Government but allowing each State to set up their own. Public Banking System that would be Semi Private Non Profit Self Financed Independent. Of all governments except that they would all be regulated. To give consumers again more Freedom of Choice in how they do their own banking. Providing Private For Profit Banks Real Competition, which would hopefully force them to get their act together. And not do things like raising fees and cutting services just to expand their profits. Because that kind of behavior would cost them customers because consumers. Would then have the option of going to another Private Bank that provides a better service at a more affordable rate. Or they could also go to a Public Bank and do business with a Non Profit Bank.
Anytime you have a situation where a Private Industry is struggling financially like in a recession and it takes that out on its customers. By cutting services and raising fees, my answer is always to expand Freedom of Choice. To Empower Consumers not Government to get the Bad Actors to act more responsibly or go out of business. Without hurting the economy and then let the people decide for themselves how to receive these services. Thats what Freedom of Choice is about.