#banks #bankingcrisis #creditcrisis #financialcrisis #bailouts
The banks appear to be insolvent to a much greater level than they were right before the start of the 2008 financial crisis. Learn what you need to know to protect yourself from a downturn.
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LEARN MORE ABOUT: Bank Failures
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The 2008 financial crisis sent shockwaves through the global economy, exposing the dangerous practices of major financial institutions and revealing significant flaws in the banking system. Now, over a decade later, it seems that the lessons of the past have not been fully learned, and the same risky behaviors are once again threatening the stability of the financial sector.
One of the main problems with the banks today is the continuation of high-risk activities and speculative practices that led to the 2008 crisis. Many banks are still engaging in complex financial products and leveraging their balance sheets to maximize profits, putting the entire system at risk of another catastrophic collapse. This behavior is often driven by the pressures of short-term profitability and the desire to compete with other banks, leading to a dangerous cycle of escalating risk and instability.
Another issue is the lack of adequate oversight and regulation of the banking industry. Despite efforts to implement new regulations and reforms after the 2008 crisis, many loopholes and weaknesses still exist, allowing banks to engage in risky activities with little accountability. Additionally, regulatory agencies and government entities have been slow to respond to emerging risks and to enforce existing regulations, leaving the banking sector vulnerable to the same problems that precipitated the last crisis.
The impact of these issues is not just theoretical – it has real-world consequences for everyday people. One of the most egregious aspects of the 2008 financial crisis was the widespread use of taxpayer money to bail out failing banks. This bailout created a sense of moral hazard, as banks realized that they could take on excessive risk knowing that they would be rescued by the government if their bets went sour. This not only serves to reward bad behavior but also creates a sense of injustice among the public, who had to bear the brunt of the crisis while the banks were propped up by government funds.
In light of these ongoing problems, it is clear that more needs to be done to reform the banking system and prevent another financial meltdown. This includes implementing stronger regulations to limit risky activities, increasing transparency and accountability in the banking industry, and ensuring that banks are held responsible for their actions. It also requires a fundamental shift in the banks’ mindset, prioritizing long-term stability and the well-being of the economy over short-term profits.
Ultimately, the health of the banking system is crucial to the overall stability and prosperity of the economy. It is vital that we address the underlying issues that continue to plague the banks, before another financial crisis wreaks havoc on the global economy. Only through effective reforms and responsible practices can we build a banking system that serves the needs of society, rather than endangering it.
What are you doing to prepare for a potential financial crisis? And what video topics would you like me to cover next?
https://www.youtube.com/watch?v=Iupyv1f2pSc bank top execs are ripping off america they got 7trillion dollar lons at .01% interest and they paid their own debt with it which allowed them to make a profit watch video to learn and top mob guys say govt too is as corrupt as the banks also check this out about the govt corruption too
https://youtu.be/__LxwaAEaL8?t=1116
This is BS. Those guys on youtube are clows taking your money and takling bullshit about our financial system. You won't become wealthy listening to those clowns, they are all self directed.The Fed is pumping those money into repo market and they aren't giving them money, thats is highly missinformation, they are lending money to hedge funds, Wall Street traders and banks during the night because banks are paying their tenths of billions of dollars in taxes to Federal Treasury and didn't have money to lend because they must remain solvent after financial crises 2008 rules. There is nothing wrong with that, they are just keeping up with LCR and as long as inflation is adjustent why the heck you worries about? Pls explain me
Its called fractional reserve banking, the concept in itself is crooked and should be a crime. A bank can loan 10 dollars for every dollar it has, where does the other 9 dollars come from if it doesnt have it? Thin air baby, and on top of that we taxpayers pay interest on thin air money.
MARC STEINER: So where does the money come from, then, to invest in infrastructure, in new businesses, and whatever else has to be invested in?
MICHAEL HUDSON: Well, banks don’t invest. That’s a myth. The pretense is that rescuing the banks rescued the economy. But the banks don’t make loans to the economy. Banks don’t make loans to fund factories. They don’t make loans for infrastructure. They make loans to buy assets already in place. They’re privatizing the structure to take it private, raise the rates the people have to pay for services.
Essentially they lend to raiders taking over corporations. They won’t help a corporation put in more equipment and hire more people, but they’ll lend to a raider to break up a corporation, downsize the labor force, smash it up and leave it a bankrupt shell. That’s the financial management plan. That’s what they teach in business schools.
So the financial management philosophy that we have is diametrically opposed to what’s needed for economic growth. That should be what people are talking about, because more and more economists are warning that given the rising debt ratios, there’s going to be another crisis. What we should be talking about when we look back on the anniversary of Lehman’s bankruptcy is how to handle the next crisis in a way that doesn’t bail out banks, that bails out the economy by writing down the debts.
If banks have bad debts, they’ve made bad loans. Banks used to be conservative and prudent. But if they make imprudent loans and they say, we don’t care the borrower can’t pay because we’ve sold the whole loan off to a pension fund or a German Landesbank, and somebody else is going to take the loss, you have to restructure the banking system and the financial management, and take it out of the hands of bankers to manage.
If you leave the Treasury Department and the Justice Department and the bank regulators in the hands of bankers, they’re going to loot the rest of the economy. They’re going to take everything they can. So you want someone who’s not a banker to actually do the regulation.
https://www.youtube.com/watch?v=V17t8bJDcw0&t=17s
"The bank strategy continues: “If we can privatize the economy, we can turn the whole public sector into a monopoly. We can treat what used to be the government sector as a financial monopoly. Instead of providing free or subsidized schooling, we can make people pay $50,000 to get a college education, or $50,000 just to get a grade school education if families choose to go to New York private schools. We can turn the roads into toll roads. We can charge people for water, and we can charge for what used to be given for free under the old style of Roosevelt capitalism and social democracy.”
This idea that governments should not create money implies that they shouldn’t act like governments. Instead, the de facto government should be Wall Street. Instead of governments allocating resources to help the economy grow, Wall Street should be the allocator of resources – and should starve the government to “save taxpayers” (or at least the wealthy). Tea Party promoters want to starve the government to a point where it can be “drowned in the bathtub.”
But if you don’t have a government that can fund itself, then who is going to govern, and on whose terms? The obvious answer is, the class with the money: Wall Street and the corporate sector. They clamor for a balanced budget, saying, “We don’t want the government to fund public infrastructure. We want it to be privatized in a way that will generate profits for the new owners, along with interest for the bondholders and the banks that fund it; and also, management fees. Most of all, the privatized enterprises should generate capital gains for the stockholders as they jack up prices for hitherto public services.
You can see how to demoralize a country if you can stop the government from spending money into the economy. That will cause austerity, lower living standards and really put the class war in business. So what Trump is suggesting is to put the class war in business, financially, with an exclamation point."
http://michael-hudson.com/2017/03/why-deficits-hurt-banking-profits/
What's wrong with banks?,nobody paying them back duh,a trillion in credit card and auto loans will be written off this year,2 trillion in red ink from the govt this year,that's 3 plus trillion that's will need to created (printed) in the next few weeks!
trumps gonna fix it hes the chosen one