The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

In an excerpt from his new book, “Greedy Bastards: How We Can Stop Corporate Communists, Banksters, and Other Vampires From Sucking America Dry,” Dylan Ratigan suggests some rule changes to encourage Wall Street’s natural greed to create productive risk taking:

The financial markets need regulation the way a nuclear-power plant needs a cooling agent for its radioactive fuel rods. If safety rules are enforced and the heat of the rods is properly controlled, the result can be clean, abundant energy. But if that cooling process is neglected, there could be a meltdown.

Similarly, capital requirements are the cooling agent of risk-taking in the economy. And just as nuclear fuel will always be reactive, people will always be greedy. We need to enforce rules to balance natural greed with capital requirements so that greed can create productive risk-taking and competition — not short-term extraction. Here are five possible ways to do that.

Make Swaps Public: In Las Vegas, you need to have actual money to gamble — your own money — and if you lose, you pay. But since 2000, banks, industries and consumers have been free to take on system-threatening levels of debt (to the point of financial meltdown) without facing any requirement to risk a significant amount of their own money. And while consumer risk- taking was curbed by the 2008 financial crisis, U.S. banks continue to use America’s deposits insured by the Federal Deposit Insurance Corporation to fund their mad, bonus-seeking speculation.

Once the banks blow through that, they borrow from the biggest money-printing house in the world: the U.S. Federal Reserve. No one else in the world can pay themselves billions to take enormous risk with little or no money down.

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

North Carolina state representative Mike Clampitt swore an oath to uphold the Constitution after his election in 2016 and again in 2020. But there's another pledge that Clampitt said he's upholding: to the Oath Keepers, a right-wing militant organization.

Keep reading... Show less

Reprinted with permission from DailyKos

When Donald Trump rolled out his brand new social media platform for deplorables, TRUTH Media, the clock started ticking on how soon it would crash and burn like Parler, Gab and other deplorable alternatives to Twitter.

Keep reading... Show less
x
{{ post.roar_specific_data.api_data.analytics }}