Why are big banks so tyrannical?

7 years ago the federal reserve gave failed, fraudulent private banks free money on the backs of the people.
Now in Europe, the bad loans to Greece are going to be carried on the backs of Germans and other Europeans, because the European Central Bank took failed, private investment loans to Greece and made them public losses.
These banks certainly don't give out bonuses to the public when they're doing well, so why do we have to pay for their fraud and mistakes?
Why does everyone just accept the policy of private profits and socialized losses?


Most Helpful Guy

  • I don't think it has to do with accepting it because we want to so much as we have such a convuluted system that seems to have removed the voice of the people and given it to the banking industry/corporations. Its just something everyone feels like they can't fix so its a gruding acceptance born of a sense of helplessness.

    • Some people are doing something about it. An amendment to get legal bribes out of politics, there are several movements attempting this through a constitutional convention (have already had success in 4 states), and maybe vote for Bernie Sanders.

    • The problem with politics is that at least on the federal level, your vote doesn't count. In the end your forced to vote for who ever had the most money (in order to campaign) and that money is not coming from the common man but organizations and conglomerates/corporations. This limits your voting options and even then thanks to the electoral collage your vote is technicly an advisory vote rather then a real one (not that it won't carry some weight but. . .) Every time a law is passed it causes our system to become more convuluted then before, this causes more loop holes and work arounds till it gets to the point of being near impossible to fix. This is what happened with the PACs and super PACs, you couldn't bribe politicians and had limits what you could contribute, so they just created a loop hole with the PACs system that let them do the same thing they were doing before but through a third party. I think there is a fundemental flaw in our system and culture that allows this to happen

    • Which is why I mentioned the movement that I mentioned.

Have an opinion?

What Girls Said 1

  • Because they completely seeded the Volcker rule this they can.


What Guys Said 2

  • The government gives carrots and sticks to incentivize banks to engage in bad business. That was partly what led to the subprime mortgage crisis. Blame the government, and ultimately blame the voters. Even the bail-outs were forced. The U. S. government didn't want the public to know which banks were in bad shape, so forced even the ones in good shape to take the money! And, before someone blames the free market... what free market? Banking was and is one of the most regulated industries (bail-outs are indeed one form of regulation) and had become much more regulated in the years and decades before the crisis, one oft-cited exception being the partial repeal of Glass-Steagall, which is blamed for a lot. But, it shouldn't be blamed. None of the banks that ran into trouble was affected by that partial repeal. Ironically, without the partial repeal, Bank of America would not have been allowed to rescue Merrill Lynch during the crisis.

    There is only one solution: deregulate. Let good banks prosper, and let bad banks fail. But, that would mean, for example, no government bail-outs for lost deposits. Do the voters really want that? No.

    Portraying the government as a servant to the banks is a reversal of the truth.

    • What exactly is 'the government' getting from mass bank fraud?

    • Show All
    • So the govt prints out money to give it to the bankers so they can then give it back to the govt, and the poor bankers are just strung along? 😂

    • The facts speak for themselves.

      We have the system that most people want, which is what happens in every country, especially a democracy.

  • Because the private international banks rule the world (that includes the Federal Reserve, which is NOT a part of the US Government), and most people are too self-absorbed to notice or care, sadly.

    The founding fathers knew that private banks were evil, and they fought it as best they could. Andrew Jackson was the target of a failed assassination attempt for shutting down the 2nd national bank. The Rothschilds still won in the long run and got their Federal Reserve, which basically sold the soul of the USA to the Rothschilds, Rockefellers, and other international banking dynasties.

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