Too Big To Fails” Have Stopped Being Banks

[Ichingcarpenter]

“Banks don’t have a need for deposits, and the demand for loans by households and firms is weak,” Niels Storm Stenbaek, chief economist at the Danish Bankers Association, said in a phone interview.
Wait … what?

Banks don’t need deposits? They’re not giving many loans? Isn’t that what banks do?

If they’re not collecting deposits and making loans, what are they doing?

In reality, big banks aren’t really acting like banks anymore. Big banks do very little traditional banking, since most of their business is from financial speculation. For example, we noted in 2010 that less than 10% of Bank of America’s assets come from traditional banking deposits.

The big banks are manipulating every market. They’re also taking over important aspects of the physical economy, including uranium mining, petroleum products, aluminum, ownership and operation of airports, toll roads, ports, and electricity. And they are using these physical assets to massively manipulate commodities prices … scalping consumers of many billions of dollars each year (more here and more).

The evidence demonstrates that the big banks have essentially become huge criminal enterprises … waging warfare against the people of the world.


Apart from the above-described manipulation, virtually all of the big banks’ profits come from taxpayer bailouts and subsidies (see this, this and this). Why don’t they need deposits? Because the taxpayers are showering them with money.

And they don’t need deposits because – as is now admitted by the mainstream – banks create money out of thin air. In other words, banks don’t need deposits in order to make loans.

At the same time, the big banks have sat on the money the government threw at them – with the encouragement of the Fed – instead of loaning it out to Main Street to kickstart the economy. As we noted in 2012, small banks are much more interested in making loans to the little guy than the TBTFs:

USA Today points out:


http://goodnewscommunications.net/too-big-to-fails-have-stopped-being-banks/

[CrispyQ]

1. They don't need our deposits, until they do.

New G20 Financial Rules: Cyprus-style Bail-ins to Confiscate Bank Deposits and Pension Funds

http://www.globalresearch.ca/new-g20-financial-rules-cyprus-style-bail-ins-to-confiscate-bank-deposits-and-pension-funds/5417351

Russell Napier, writing in ZeroHedge, called it “the day money died.” In any case, it may have been the day deposits died as money. Unlike coins and paper bills, which cannot be written down or given a “haircut,” says Napier, deposits are now “just part of commercial banks’ capital structure.” That means they can be “bailed in” or confiscated to save the megabanks from derivative bets gone wrong.

Rather than reining in the massive and risky derivatives casino, the new rules prioritize the payment of banks’ derivatives obligations to each other, ahead of everyone else. That includes not only depositors, public and private, but the pension funds that are the target market for the latest bail-in play, called “bail-inable” bonds.

“Bail in” has been sold as avoiding future government bailouts and eliminating too big to fail (TBTF). But it actually institutionalizes TBTF, since the big banks are kept in business by expropriating the funds of their creditors.

It is a neat solution for bankers and politicians, who don’t want to have to deal with another messy banking crisis and are happy to see it disposed of by statute. But a bail-in could have worse consequences than a bailout for the public. If your taxes go up, you will probably still be able to pay the bills. If your bank account or pension gets wiped out, you could wind up in the street or sharing food with your pets.

This statement in the OP is absolutely spot on:

The evidence demonstrates that the big banks have essentially become huge criminal enterprises … waging warfare against the people of the world.

[Taitertots]

2. Simple solution stop giving them your money

Withdrawal your money. It is the only weapon that you have against them.

[winter is coming]

3. So the news networks go into blaring crisis mode over ISIS while ignoring

something that's a more immediate threat to our national security.