Citizens, Subjects and The Curse of Too Big To Fail Banking

By: Repair_Man_Jack (Diary)  |  March 8th at 12:00 PM  | 

Celebrity CEO Jamie Dimon has made a compelling case against breaking up major US financial institutions. He cites the advantages inherent to economies of scale and claims that bigger banks are able to get better leverage out of their assets and thereby give average customers like little old me a better deal on financial products.

What doesn’t get mentioned by Dimon and his entourage is the power of moral hazard, the implicit subsidy and the blackmail potential that all come implicitly with being a bank that is too big to fail. Without indulging in paranoia worthy of Beppe Grillo and looking for the Bankster under the bed, we still can make a reasonable case that bigger banks are given significant advantages that exempt them from the laws that mere mortals like little old me are forced to obey if we desire a peaceful life.

Read More »

The uber-delusion of the Democrats: “The government is the only thing that we all belong to.”

By: Moe Lane (Diary)  |  September 5th at 07:30 PM  | 

… it shows various Democratic convention attendees’ reactions to the DNC’s infamous statement “The government is the only thing that we all belong to.” As you might suspect (or even fear), the attendees featured largely showed support for a political philosophy that wishes to essentially beat to death one of the basic operating principles of the American Republic, then urinate on its corpse.

Read More »