It bugs me that people don't understand how our money system works. When rich people play games with our money we ALL lose. When banks need bailouts more money is created and lowers the value of all money that exists. Just because the loan is paid back does not mean the money created for the loan gets destroyed. And don't think for a second banks have all that money laying around because they don't--who puts money in savings accounts anymore? Next to nobody. So where does it come from?
Anyway, watching banks fail is both worrisome and reassuring. First off, banks *should* be allowed to fail if we're sticking with free market rules. Hell, if we're sticking to *physics* banks should be allowed to fail. Because propping them up (as mentioned in the above paragraph with a bailout) means less money (or rather less value) in our own pockets. The problem with a lot of banks failing is that it means the system isn't stable. That means a new system should be built from scratch that IS stable or that the current system needs to be made stable by drastic changes (little changes haven't helped so far).
And just because the Republicans don't like the financial overhaul bill doesn't mean it's a bill that does enough. It just means the Republicans are dickweed "no-men" who won't be happy with anything the Dems want to do.
Really, we need to ban, what I call, "Zero-point money" which allows people to make money via slight of hand and doing things that, at their core, are obviously amoral. Things like selling debts, buying insurance on things you don't own, betting stocks will go down. I don't see a problem with buying stock in a company, but all these other tricks and games are just BS and make it far to easy to lie and defraud people. Ban this shit and you'll solve a lot of the problems facing our economy.
Oh and getting back on some sort of precious metals standard would be good, too. Or do you like a money system that works like a balloon that can infinitely inflate (until it pops)?
Just my ¥2--I'm no economist. Just a guy who reads stuff.
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