simple, outstanding observation! banks produce nothing. don't build houses, roads, don't construct airplanes, cars, don't make computers, iphones or even create porn. they can't even handle managing risk. yet for these achievements the society grants them the biggest power. if thats the Will of the sheeple, so be it.
maybe they can't manage risk, but they accept it, and for that they should be paid your inability to see risk as a valuable commodity is where you go wrong there are many threads here on et on the social value of trading, and most of them ignore the value of risk no risk=no reward and that goes for me, and the guy on the other side of my trade and society in general
Oldtime made an important point when he wrote: "the USA and the Federal reserve is a model most emerging economies envy and are striving for. Just look at Europe, with a strong Federal Reserve they wouldn't be in the shape they are in now. Your idea to eliminate risk from lending is quite naive. There can be no lending without the risk of default." If you look closely at bank and savings and loan failures since the advent of the formation of the 2nd Central Bank in the U.S., you will find that the reasons for all of them are well known, as are the remedies. No matter what, however, there will always be the rare instance of crime . This can not be avoided, but it is no reason to declare the banking system a failure. William Black has both spoken and written widely on this topic. If you do a search you will easily turn up all of the information needed to understand these various banking crises and their remedies. These crises don't in any way cast doubt on the very great public value of the U.S. fractional reserve banking system, they simply teach us that good regulation and wise enforcement is needed, and that we must not ignore the lessons of the past.
cool, I finally got a brownie point from you. Just wait, I am reading the Soros lectures you recommended. In just a few short days I will be an expert on "negative feedback"
banks accept risk? wow, this is the most insane and delusional statement i've heard in many years. even sarah palin was more rational. ever heard of federal reserve and ECB and their little santa claus help?
Tell that to all the bank common share holders that lost their entire investment since 2008. There was no Santa Claus for them!