Mar 25 2009
How did they get to be in charge??
If you want to find the beginning of the end of our economy as we know simply go back to November 1999 when the Glass Stegall Act was demolished. What is this act you ask? It was enacted in 1933 and specifically designed to protect our money by controlling a banks ability to speculate…i.e. it forbid any bank from owning insurance companies and/or investment banks and vice versa.
It doesn’t take a genius to see that once overturned the die was cast setting up the economic debacle we are now facing. You see, banks can only make money when the move piles of cash from one place to another and in order to make more money they needed to create more piles. So with the blowing up of that act, they could now finally express their financial creativity. The problem is that they HAVE NO CREATIVITY!
I know this first hand having been a banker for many years and it’s precisely that lack of business sense and creativity that drove me out. Let’s face it; they are bankers for a reason…because they don’t know crap about business. They’re the guy who never has the balls to make a bet; he just holds everybody’s cash (for a fee of course).
So they put their collective pea brains together and over the years created financial instruments that (to their way of thinking) removed all risk. Oh…a $300,000 home to someone making $60K a year, no problem. We’ll just bundle it in with these others, lay the risk off on a wide group of investors and voila! No more risk!
Bankers, get a clue! You aren’t entrepreneurs…you have no idea what real risk is nor do you know how to handle it! So from now on, take my cash on deposit, make loans to people who have the ability to pay them back and give me a fair return for doing so. PERIOD!
Oh, and please step aside to let the real business men and women take the lead – where we belong…
Dwain
The Biker Guy
As a famous social commentator once said “This is just my opinion, I could be wrong”. So, if you disagree or simply want to pile on, please do so either here on the BLOG or email me directly at Navigator@BikersGuidetoBusiness.Com I look forward to hearing from you.
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