“Let me be frank. Our banks earn profit too easily. Why? Because a small number of large banks have a monopoly.”
Sounds like something I would have said. Or something our president SHOULD be saying.
Except here’s the thing. The elected official quoted isn’t talking about our own corrupt banking system.
The quote above came from the prime minister of China. And he’s talking about his own country’s state-run banking companies.
Wen Jiabao, during a recent broadcast of China’s state-run radio, said his banks need to be broken up to fix his country’s economy.
If China, a country not exactly known for embracing capitalism, wants to break up its banks, does the US have any other choice but to follow suit?
I believe our nation, as a people, is duty bound to do so.
I’m saying it. The Dallas Fed has said it. Even Bruce Springsteen has said it. And now the prime minister of China has said it.
When banks are not only ‘Too Big To Fail’ but too big to compete, we the people must step in and break them up.
There really is no other choice. It’s pretty shocking that China has come to that conclusion before us. In fact it’s an absolute disgrace.
The idea that it’s OK for the TBTF banks to continue operating at the size they now do is a fallacy and it’s a notion that’s only been propounded by the banking industry to basically preserve the status quo.
Just shows you whose pockets many of our politicians are in.
Only when we have competitive, nimble, smaller banks that are able to seize new opportunities as they arise are we going to be able to compete on the world stage.
(more…)
