If you're like me, you don't naturally pick up economic lingo. Found this great little video at TN Sons of Liberty that takes you through the last 150 years of banking and how it has changed. Banks are not about the free market. I hear a lot of conservatives screaming about the free market and liberals occupying Wall Street. Both sides don't seem to be aware that the banking industry is NOT the free market. Lots of great analogies to help you understand it all in this video:
I find it quite interesting that banks were originally unlimited liability partnerships. Obviously, this is counter to everything our current system is built on. But it did cause banks to be highly conservative.
ReplyDeleteIt's interesting you posted this video, I was just discussing the problems with "limited liability" in a free society.
Clearly, allowing bank managers/owners to remove themselves from personal responsibility has caused a lot of problems throughout history. Even more so, allowing limited liability in corporate structures has, at times, done similar damage.
Yes its counter to our current system as the bankers worked like heck to change the laws through the years to make it so they get the profits and take none of the losses.
ReplyDeleteThe more I learn about the banking industry, the more I come to realize who's really running the show.