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View Diary: The Evening Blues - 1-28-13 (42 comments)

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  •  Good evening, Joe Shikspack (6+ / 0-)

    Professor Leo Panitch makes some good points, but I don't agree with all of them(it ignores 50 years of successes with smaller institutions so they're all bad kind of ignores the Great Compression and crisis aversion til the 80s). Marshall Auerback has more.

    I'm definitely for making banks into public utilities, but that is an even bigger goal than breaking up the banks which he talked about as a sort of pie in the sky language on the left. He's right about economies of scale and there needing a transition period(yet leaves out the government can choose what to backstop and what not to in an ultimately successful type of bailout like Sweden or the S&L crisis) but it can be done as it was done before and enforcing regulations even on smaller banks and ultimately that banking needs to be really boring and regulated like utilities, but if we can't get that Brown Kaufman would have made a major difference which is why the WH fought to defeat it. Standard Oil was broken up and so was Northern Securities a railroad monopoly with good effects which is history he would have to ignore to make some of those points.

    So agree and disagree.

    The President of Iceland is right, too.

    Thanks, Joe Shikspack.

    I don't negotiate grand bargains with deficit terrorists!

    by priceman on Mon Jan 28, 2013 at 05:46:14 PM PST

    •  evening priceman... (5+ / 0-)

      yeah, i'm similarly skeptical about some of panitch's comments about the necessity of retaining large institutions at the expense of breaking them into smaller institutions.  i've for a long time been in favor of returning the job of creating the money that the government needs to operate to the public sector and letting the private banking institutions resize themselves in accord with their smaller role.  i'd also like to see most states create a banking institution akin to the bank of north dakota and see how that works out.

      i've long been a "small is better" kinda guy, and panitch arguing that we need large banking institutions to service our large industry makes me ask the question, "do those institutions need to be that large as well?"  perhaps if all of those oversized titans of industry and finance were diminished to a more "human" size, it would be a better thing for people, the environment and perhaps the economy as well.  

      i'm part of the 99% - america's largest minority

      by joe shikspack on Mon Jan 28, 2013 at 06:00:07 PM PST

      [ Parent ]

      •  Agreed. The bank of North Dakota is promising.. (5+ / 0-)

        The creation of money does need to return to the public sector which can be done debt free and public banks for states and private banks playing a smaller role to manage dollar assets and succeed or fail on their own merit.

        Exactly. When we are trying to sustain all kinds of systems ultimately smaller is better despite the temporary fallout.

        I don't negotiate grand bargains with deficit terrorists!

        by priceman on Mon Jan 28, 2013 at 06:21:33 PM PST

        [ Parent ]

      •  I don't know which (2+ / 0-)
        Recommended by:
        priceman, ek hornbeck

        position is more unattainable (or should I say less pragmatic): small is beautiful or global public democratic planning. Most days,I think I'll get my next Soros check first.

        "George RR Martin is not your bitch" ~~ Neil Gaiman

        by tardis10 on Mon Jan 28, 2013 at 07:22:39 PM PST

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        •  Well that's kind of a dillemma (1+ / 0-)
          Recommended by:
          ek hornbeck

          I do think there needs to be some global public central planning with a growing population(where I find weakness in anarchist thought while agreeing with a lot of it) but there is sadly already global public infrastructure for disastrous shit we don't need like the war on terror. We need that sort of thing for battling climate change and spreading diminishing resources to everyone who needs them by giving Democratic control of the creation of money dispersed everywhere to idle human resources.

          The smaller is better(though not too small) contained model mostly goes for the private financial sector; it needs to become more domestic as a whole because it's so big and globally interconnected it's almost impossible to regulate.

          I don't negotiate grand bargains with deficit terrorists!

          by priceman on Mon Jan 28, 2013 at 08:29:17 PM PST

          [ Parent ]

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