Posted by: Tony Carson | 10 November, 2009

Break-up the ‘too big to fails’

There is a proposed bill in the US Congress that would stop the Big Bank Ransomers. The bill would cut the financial institutions that are ‘too big to fail’ into ‘failurable’ size.

It has no chance of passing.

But why not? The trustbusters of history were heros. They broke up the monopolies that were squeezing everyone but their shareholders.

There’s not much difference here. These financial houses are doing whatever they want, usually without any regulations, knowing that if things go wrong the government must bail them out.

That obviously has to stop. These predators must be cut down to size and they must be more heavily regulated. They just got a $3 trillion bail-out for chrissake.

Why not follow Europe’s lead. Europe is in the process of breaking up:

Lloyds (LYG)

Royal Bank of Scotland (RBS)

Northern Rock (NHRKF.PK)

ING (ING)

And potentially other banks.

Sen. Bernie Saunders’ proposed bill is apparently full of holes but so is the law regulating these banks.

For the health of the world’s economy, the US has to get serious and break-up the ‘too big to fails.’ Obviously.

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