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View Diary: Naked Capitalism: "...Democrat Bank Stooges Launch Bills to Permit Bailouts, Deregulate Derivatives" (109 comments)

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  •  I seem to remember JP Morgan bailing out the Fed (0+ / 0-)

    in a move that helped end the depression.  

    WTH is going on now?  Are those bankers THAT bad at their jobs?  

    "In Capitalist West, man takes advantage of his fellow man.  In Soviet Russia, is other way around !"

    Stop the World, I want to get off.  

    "We must close union offices, confiscate their money and put their leaders in prison. We must reduce workers salaries and take away their right to strike.” -Adolf Hitler, May 2, 1933

    by bekosiluvu on Wed Mar 20, 2013 at 06:21:49 PM PDT

    •  No. Old Man Morgan saved the system in 1907 (3+ / 0-)

      pre-Fed.

      The panic might have deepened if not for the intervention of financier J. P. Morgan,[3] who pledged large sums of his own money, and convinced other New York bankers to do the same, to shore up the banking system. At the time, the United States did not have a central bank to inject liquidity back into the market.
      Wiki - Panic of 1907.

      Morgan died in 1913 just before the Fed was created by progressives.

      "The way to see by faith is to shut the eye of reason." - Thomas Paine

      by shrike on Wed Mar 20, 2013 at 06:31:34 PM PDT

      [ Parent ]

      •  Dayum! how many 1%ers would it take (1+ / 0-)
        Recommended by:
        shrike

        stepping in now to pull off the same move?  

        and...would it be a good thing?

        "We must close union offices, confiscate their money and put their leaders in prison. We must reduce workers salaries and take away their right to strike.” -Adolf Hitler, May 2, 1933

        by bekosiluvu on Wed Mar 20, 2013 at 06:58:56 PM PDT

        [ Parent ]

        •  Actually that is a GREAT question! (3+ / 0-)

          It would take hundreds because Morgan was a giant back then that could not exist now.

          IOW, Morgan owned Morgan in 1907 - today JPM is still the biggest but is owned by millions of shareholders.

          "The way to see by faith is to shut the eye of reason." - Thomas Paine

          by shrike on Wed Mar 20, 2013 at 07:04:44 PM PDT

          [ Parent ]

          •  Besides (0+ / 0-)

            Market crashes preferentially hurt the rich and decrease inequality, because the rich tend to have more to lose in terms of income and assets.

            If you're poor, you're poor before the crash and after it too.

            (-5.50,-6.67): Left Libertarian
            Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

            by Sparhawk on Thu Mar 21, 2013 at 05:29:21 AM PDT

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      •  wait-whut? (0+ / 0-)
        Fed was created by progressives.
        Not really......

        The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

        by ozsea1 on Wed Mar 20, 2013 at 07:27:53 PM PDT

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        •  Of course it was. President Wilson was the (4+ / 0-)

          first Democratic progressive.

          I am not watching your CT video.  The Fed originated in the Greenback Party - farmers who wanted an elastic banking system to protect their deposits.

          I know my history.

          "The way to see by faith is to shut the eye of reason." - Thomas Paine

          by shrike on Wed Mar 20, 2013 at 07:36:44 PM PDT

          [ Parent ]

          •  so do I (1+ / 0-)
            Recommended by:
            lostinamerica

            Better still, I understand the lessons of history.

            Andrew Jackson. Jefferson. Mayer Amschel Rothschild. Bank of England.

            You can't tell me that private banking cartels controlling a nation's money supply is progressive, no matter what you think you know about banking history.

            The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

            by ozsea1 on Wed Mar 20, 2013 at 07:52:05 PM PDT

            [ Parent ]

            •  Seriously, you don't know shit. (3+ / 0-)
              Recommended by:
              kovie, johnny wurster, kefauver

              There was a free banking era in the US - 1837-1862 when private bankers did control the money supply.

              http://en.wikipedia.org/...

              During the free banking era, the banks were short-lived compared to today's commercial banks, with an average lifespan of five years. About half of the banks failed, and about a third of which went out of business because they could not redeem their notes.[2] (See also "Wildcat banking".)

              During the free banking era, some local banks took over the functions of a central bank. In New York, the New York Safety Fund provided deposit insurance for member banks. In Boston, the Suffolk Bank guaranteed that bank notes would trade at near par value, and acted as a private bank note clearinghouse.

              Since progressives stepped in the banking system has been under federal control.

              "The way to see by faith is to shut the eye of reason." - Thomas Paine

              by shrike on Wed Mar 20, 2013 at 08:03:34 PM PDT

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              •  yeah, there were "panics" every ten years or so (0+ / 0-)

                this "free banking" system that you speak of was unregulated in the extreme.

                And so the solution?

                Privatize the money supply? So the private banking cartels can skim off the top of the nation's money?

                Pregressive? Really?

                You're the one that doesn't understand shit.

                The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

                by ozsea1 on Thu Mar 21, 2013 at 08:17:51 AM PDT

                [ Parent ]

            •  Jefferson and Jackson were wrong, deeply so (0+ / 0-)

              both drastically cut federal spending to balance the budget and tried to kill the Bank of the US (Jackson succeeded, Jefferson failed), and in so doing caused huge recessions and monetary problems.

              "Liberty without virtue would be no blessing to us" - Benjamin Rush, 1777

              by kovie on Wed Mar 20, 2013 at 10:09:33 PM PDT

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              •  hmmm (0+ / 0-)

                I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
                Thomas Jefferson, (Attributed)

                The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

                by ozsea1 on Thu Mar 21, 2013 at 08:18:26 AM PDT

                [ Parent ]

                •  And we have a modern world without banks how? (0+ / 0-)

                  Everything can be bad if poorly done and unregulated. We need banks like we need air to have a modern world. They fuel the economy. We'd be back to the early middle ages without finance. And Jefferson had no credibility to talk about money, having been terrible at personal AND national finance and been in debt most of his life for reasons entirely of his own making.

                  We need banks. We need to regulate banks. End of discussion.

                  "Liberty without virtue would be no blessing to us" - Benjamin Rush, 1777

                  by kovie on Thu Mar 21, 2013 at 08:54:23 AM PDT

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                  •  Public and regulated banking, fine (1+ / 0-)
                    Recommended by:
                    kovie

                    Privatized control of our national money  - the commons - where "overhead" is charged as the cost of doing "business", is not.

                    Please note that I never advocated doing away with the banking system. As you note, we wouldn't have a "modern world" without it.

                    Please see "The History of Money"  - the wiki article isn't too bad.....

                    http://en.wikipedia.org/..._(book)

                    On that, I hope that we can agree.

                    The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

                    by ozsea1 on Thu Mar 21, 2013 at 10:21:06 AM PDT

                    [ Parent ]

                    •  On this we agree (0+ / 0-)

                      Public and regulated banking. Which, in theory, we have. In practice, we do not, as the banks control the government and the fed, indirectly but just as effectively. I have no problem with private banking too. In fact we absolutely need it. But it too has to be heavily regulated.

                      "Liberty without virtue would be no blessing to us" - Benjamin Rush, 1777

                      by kovie on Thu Mar 21, 2013 at 11:17:11 AM PDT

                      [ Parent ]

          •  More generally, it originated (0+ / 0-)

            in the minds of Robert Morris and Alexander Hamilton, who saw the need for a federally-overseen national banking system to provide a stable and reliable money supply. But point taken, since the fed added many new features.

            "Liberty without virtue would be no blessing to us" - Benjamin Rush, 1777

            by kovie on Wed Mar 20, 2013 at 10:08:01 PM PDT

            [ Parent ]

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