I have to disagree with you based on your statement:
"Where the banks fucked up is by shorting massive amounts of silver, meaning they sold something they don’t have."
I disagree because a bank should not be speculating in any market such as stocks, commodities, or futures. The moment they begin doing that they are no longer just a bank. They are simply a casino betting with other people's money.
That's wrong.
The regulation prohibiting that was rolled back to the detriment of the entire world. So, no, I don't agree this is something that shouldn't be done simply because it locks up the person on main street. I believe this needs to be done to get rid of this cancer. 2008 didn't change a damn thing for banks. They rewarded themselves with massive bonuses and continued on as if the 2008 event never occurred.
When a system becomes so corrupt, so degenerate and morally bankrupt that it continues to do the same things it's always done - and which always cause pain to the person on main street - without a care in the world because it always gets away with it? Time to tear it down and imprison the people involved.
I've seen financial advice going back to the early 2000's advising people to invest in precious metals because of what happened with the Dot Com bubble. I've read advice going back decades to keep enough liquid cash available to pay for a few months of living expenses. 1987, 1999, 2008. Heck, go back to 1929. The behavior the financial institutions engage in is not new behavior. They've just never been held truly accountable - and never had to worry about the laws preventing such actions from staying on the books for very long.
I agree with you on that. The banks shouldn’t be involved in any speculation in stocks and commodities. I more so meant they especially shouldn’t be shorting commodities and stocks since the potential losses are infinite. But also realize they are “speculating” when they issue loans to businesses. They are betting the company won’t go out of business and will be able to pay back the full amount of the loan + interest. So the banks will always be taking on some kind of risk by lending.
I think this time will be different in terms of holding them accountable. If Q and Trump’s plan comes to fruition I expect they will make sure something like this never happens again.
Ah, but being in the Loan business is not that same as speculating in stocks/commodities/futures. With loans, a banker "should" take into account the borrower's ability to not just repay the loan, but also consider what the borrower brings in as collateral. Which is completely different than using the savings of other people in order to speculate in uncertain markets in order to make money, using someone else's money, and as the bank I pocket all profit.
That's not banking, that's gambling. Providing loans as a bank is nothing like speculating in the markets with the money of other people because at least with loans, the ability of the borrower to repay and offer up collateral is something to consider if that loan should enter default.
I get your sentiment. I completely understand it. Any system crash happening now will hurt the main street person far, far worse than it would any banker or politician. But that's the crux of the issue. How will this type of behavior end, if the blue collar worker doesn't completely understand how much he/she is being screwed over by bankers gambling with funds that don't belong to the banker?
For decades people have been trying to educate and disseminate information about how the banking industry actually operates. Up until this recent /r/wallstreetbets focus on the silver industry, people would have thought you crazy if you said you bought an ASE and tried to explain the difference between currency and money.
What big banks are doing with Wall Street should be, and at one time was, criminal. It's not anymore because the right people lined the pockets of the other right people. If the person on main street doesn't wake up and stop this type of action, then they will keep getting screwed by those same banks and politicians. Any action now to delay it is simply kicking a hand grenade further down the road and praying it doesn't explode.
I have to disagree with you based on your statement:
"Where the banks fucked up is by shorting massive amounts of silver, meaning they sold something they don’t have."
I disagree because a bank should not be speculating in any market such as stocks, commodities, or futures. The moment they begin doing that they are no longer just a bank. They are simply a casino betting with other people's money.
That's wrong.
The regulation prohibiting that was rolled back to the detriment of the entire world. So, no, I don't agree this is something that shouldn't be done simply because it locks up the person on main street. I believe this needs to be done to get rid of this cancer. 2008 didn't change a damn thing for banks. They rewarded themselves with massive bonuses and continued on as if the 2008 event never occurred.
When a system becomes so corrupt, so degenerate and morally bankrupt that it continues to do the same things it's always done - and which always cause pain to the person on main street - without a care in the world because it always gets away with it? Time to tear it down and imprison the people involved.
I've seen financial advice going back to the early 2000's advising people to invest in precious metals because of what happened with the Dot Com bubble. I've read advice going back decades to keep enough liquid cash available to pay for a few months of living expenses. 1987, 1999, 2008. Heck, go back to 1929. The behavior the financial institutions engage in is not new behavior. They've just never been held truly accountable - and never had to worry about the laws preventing such actions from staying on the books for very long.
I agree with you on that. The banks shouldn’t be involved in any speculation in stocks and commodities. I more so meant they especially shouldn’t be shorting commodities and stocks since the potential losses are infinite. But also realize they are “speculating” when they issue loans to businesses. They are betting the company won’t go out of business and will be able to pay back the full amount of the loan + interest. So the banks will always be taking on some kind of risk by lending.
I think this time will be different in terms of holding them accountable. If Q and Trump’s plan comes to fruition I expect they will make sure something like this never happens again.
Ah, but being in the Loan business is not that same as speculating in stocks/commodities/futures. With loans, a banker "should" take into account the borrower's ability to not just repay the loan, but also consider what the borrower brings in as collateral. Which is completely different than using the savings of other people in order to speculate in uncertain markets in order to make money, using someone else's money, and as the bank I pocket all profit.
That's not banking, that's gambling. Providing loans as a bank is nothing like speculating in the markets with the money of other people because at least with loans, the ability of the borrower to repay and offer up collateral is something to consider if that loan should enter default.
I get your sentiment. I completely understand it. Any system crash happening now will hurt the main street person far, far worse than it would any banker or politician. But that's the crux of the issue. How will this type of behavior end, if the blue collar worker doesn't completely understand how much he/she is being screwed over by bankers gambling with funds that don't belong to the banker?
For decades people have been trying to educate and disseminate information about how the banking industry actually operates. Up until this recent /r/wallstreetbets focus on the silver industry, people would have thought you crazy if you said you bought an ASE and tried to explain the difference between currency and money.
What big banks are doing with Wall Street should be, and at one time was, criminal. It's not anymore because the right people lined the pockets of the other right people. If the person on main street doesn't wake up and stop this type of action, then they will keep getting screwed by those same banks and politicians. Any action now to delay it is simply kicking a hand grenade further down the road and praying it doesn't explode.