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I like this line from Bill Black:
“These Democrats want to maintain America’s pre-eminence in global financial capitalism at any cost.”
Yes, they think it important for some measurement of ‘power’ that has nothing to do with our real standard of living. Like pyramid building or something like that.
I do think with net interest margins now north of 4% (thanks to government policy) and GDP stabilizing due to deficits in excess of 6% of GDP, and more fiscal on the way, the banks can now earn their way out of just about anything.
All they need is a year or two of very modest GDP growth. And it doesn’t bother me a bit that the legacy issues and past frauds might keep their net earnings depressed during that recovery time.
What does bother me is that it seems nothing has been done to remedy the fundamental flaws that support the ‘more trouble than it’s worth’ financial sector.
These include tax advantaged ‘savings’ incentives including pension rules, ira’s, corporate reserves, etc. as well as laws that support and enforce the trading of financial instruments.