“If commercial banks & investment banks are within the same corporate structure, investment banks are able to use some of the deposits to make their riskier bets. So they use cheap, guaranteed money to make bets on the market. When their bets collapse, as they did in the Great Recession, the depositors from the commercial side of the bank are exposed to that loss, which puts the government on the hook to pay out those deposits.”
“The Fed just scares me. It has so much influence over our economy, but we don’t really know how it works. Further, there’s just factual items that casts doubt on the legitimacy of the Fed: bill signed on Christmas Eve when many representatives weren’t in DC; income tax instituted the same year; the supposed men who drafted the bill (titans in Finance creating the entity that regulates Finance…); the unusual concentration of bank runs right before the Fed was suggested. If it walks & talks like a bear, is it a bear?”Read more "Should the Federal Reserve be audited? (S264)"
“This seems like common sense legislation. We don’t want those regulating the industry to receive any kind of benefit from that industry (whether before or after). This would obviously incentivize them to act favorably toward that industry, especially since they can make significantly more money in the private sector than with the government.”Read more "Should there be stronger laws against the revolving door b/t government & the financial industry? (S1779)"