The Political Fray - Political Forum
Go Back   Political Fray > The Political Fray > Economics

Economics For discussion about economics, financial markets, investing, stock markets, finance, and economic theory

LinkBack Thread Tools Display Modes
Old October 2nd, 2017, 02:31 PM   #1
numan's Avatar
Joined: Nov 2016
From: Victoria, BC
Posts: 1,359

How Big Banks Became Our Masters

How Big Banks Became Our Masters

Adam Smith, the father of modern capitalism, envisioned financial services (and I stress the word “service”) as an industry that didn’t exist as an end in itself, but rather as a helpmeet to other types of business. Yet lending to Main Street is now a minority of what the largest banks in the country do. In the 1970s, most of their financial flows, which of course come directly from our savings, would have been funneled into new business investment. Today, only about 15 percent of the money coming out of the largest financial institutions goes to that purpose. The rest exists in a closed loop of trading; institutions facilitate and engage in the buying and selling of stocks, bonds, real estate and other assets that mainly enriches the 20 percent of the population that owns 80 percent of that asset base. This doesn’t help growth, but it does fuel the wealth gap.
There will never be peace until the last billionaire oligarch is hung with the intestines of the last Wall Street Banker.
[With apologies to Voltaire]
numan is offline  

  Political Fray > The Political Fray > Economics

banks , big , masters

Thread Tools
Display Modes

Similar Threads
Thread Thread Starter Forum Replies Last Post
US banks ready for another bailout ..... netanyahoo Economics 16 February 16th, 2012 01:58 PM
Canadian banks Fascist Canuck Economics 23 January 29th, 2012 06:55 PM
US to file lawsuits against major banks myp Current Events 4 September 3rd, 2011 04:55 AM
Fed's Hoenig calls it like it is- big banks are government backed myp Current Events 0 April 12th, 2011 06:56 PM
Should the banks get bailed out? Jlk311 Economics 6 February 11th, 2009 03:15 PM

Facebook Twitter RSS Feed

Copyright © 2009-2013 Political Fray. All rights reserved.