Financial services


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>   
>   Sounds like the IMF & misguided bankers everywhere are systematically
>   degrading everyone’s economy.
>   

Yes!

>   
>   Do enough people anywhere understand national currency systems?
>   

No!

>   
>   Are ALL financial service industries more trouble than they’re worth?
>   

Best i can tell. There probably are a few that are OK, just haven’t identified them.

We need our banks only to:

  1. Manage the payments system
  2. Provide a ‘safe’ depository/insured deposits
  3. Make and hold loans deemed to further public purpose that are not subject to liquidity issues of the lender.

In 1972 the US had 2.6 million housing starts with a population of only 200 million people, all financed by a bunch of boring savings and loans staffed by VERY modestly paid loan officers who left at 3:30 every day to play golf. (I was one of them.)


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3 Responses to Financial services

  1. barton says:

    Warren and well, everybody, I strongly recommend reading this article in the Atlantic (online), not because this guy is right or wrong about any particular solution, but because he is amazingly spot on in describing the “financial oligarchy” and how the financial industry has attained an increasingly influential position in the US economy, society and political system. He says, tellingly “A whole generation of policy makers has been mesmerized by Wall Street, always and utterly convinced that whatever the banks said was true.”

    Read!

    Below is the link
    http://www.theatlantic.com/doc/print/200905/imf-advice

    Reply

  2. warren mosler says:

    we have to play the cards we are dealt. at the end of the day it’s humans who make the decisions.

    my ethical issue was whether to grant a woman named Alice a $75 loan for a lawn mower. She was over 80 years old and I suspected the store owner had talked her into something she couldn’t actually use.

    Her credit was good and my boss said to make the loan.

    She died shortly after. Don’t know if she ever did use the mower.

    Reply

  3. Mr. Magoo says:

    “Make and hold loans deemed to further public purpose that are not subject to liquidity issues of the lender.”

    Warren what were the hardest loans you made when you were a lowly underpaid loan officer? What loans were you asked to provide to people or projects that conflicted with your personal moral, ethical, or religous code?

    When I was in Tampa Fl there was a strip club owner there running for city council. Now perhaps you are raised in a certain religion that nudity is a sin. That makes you a VERY biased loan officer in his eyes. So when this guy walks into the bank to get a loan for the nudist colony (there are several in florida) and you say NO – I think huge problems start to appear. When he wants a loan for a strip club and you say no – problems start to appear. When the scientologists in florida walk in to get a loan and you say NO – well you see where I am going with this.

    You have started to decide what is best for the world, all skewed by your personal experiences and prejudices.

    My black and latino friends – some from very poor areas could never walk in and get the loans from certain bank loan officers that were DESPERATELY needed – Either because of class, religion, race, the list goes on and on and on. The reverse has also been true, I have seen many latino loan officers in Miami do very unethical things to aid an illegal immigrant.

    The loan officers have been given the keys to our financial system – in essence they can determine who makes it and who does not in society – this is far TOO MUCH power to leave in the hands of a human with all its emotions and prejudices and hatred and ignorances. They are the weak link.

    The current financial mess is just one more of the millions of pieces of evidence proving loan officer ethics and the whole system is broken and does not serve anyone but the good ole boys club. I don’t care about your standing armies or long held traditions, you give me the power to decide who gets loans or who pays what taxes and I can destroy you or change you and your nation any way I please.

    I remember back in the middle 90’s some of the black congressman trying to prevent his constituents from getting gouged by payday lenders getting in a fight with some of the white congressman in the state legislature – the argument basically going the whites could get thier money at maybe 5-10% interest and the black congressman had to pay more if he got any at all for similar projects.

    Reply

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