Conservative economists love “creative destruction.” They can’t wait to “get their Schumpeter on” when a business fails and thousands of workers lose their jobs. There is no more “creative destruction” conceivable than when we put a bank that has become a fraudulent enterprise into receivership, remove the controlling officers leading the fraud, and sell the bank through an FDIC-assisted acquisition. Indeed, the pinnacle of creative destruction would be doing this with a systemically dangerous institution (SDI) through a process that split the supposedly “too big to fail” bank into smaller components that (1) were no longer large enough to pose a systemic risk, (2) were more efficient than the bloated SDI, (3) no longer extorted a large (implicit) government subsidy that made real competition impossible, and (4) no longer had dominant political power via crony capitalism. Unlike the situation in which an SDI collapses suddenly in the midst of causing a global crisis when its frauds cause a liquidity crisis, it is vastly easier to put fraudulent SDIs in receivership in today’s circumstances. Unlike Arthur Anderson, the receivership power allows us to keep the enterprise alive and create more competitors rather than fewer.
Bank Whistleblowers United
Posts Related to BWU
Recommended Reading
Subscribe
Articles Written By
Categories
Archives
November 2024 M T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Blogroll
- 3Spoken
- Angry Bear
- Bill Mitchell – billy blog
- Corrente
- Counterpunch: Tells the Facts, Names the Names
- Credit Writedowns
- Dollar Monopoly
- Econbrowser
- Economix
- Felix Salmon
- heteconomist.com
- interfluidity
- It's the People's Money
- Michael Hudson
- Mike Norman Economics
- Mish's Global Economic Trend Analysis
- MMT Bulgaria
- MMT In Canada
- Modern Money Mechanics
- Naked Capitalism
- Nouriel Roubini's Global EconoMonitor
- Paul Kedrosky's Infectious Greed
- Paul Krugman
- rete mmt
- The Big Picture
- The Center of the Universe
- The Future of Finance
- Un Cafelito a las Once
- Winterspeak
Resources
Useful Links
- Bureau of Economic Analysis
- Center on Budget and Policy Priorities
- Central Bank Research Hub, BIS
- Economic Indicators Calendar
- FedViews
- Financial Market Indices
- Fiscal Sustainability Teach-In
- FRASER
- How Economic Inequality Harms Societies
- International Post Keynesian Conference
- Izabella Kaminska @ FT Alphaville
- NBER Information on Recessions and Recoveries
- NBER: Economic Indicators and Releases
- Recovery.gov
- The Centre of Full Employment and Equity
- The Congressional Budget Office
- The Global Macro Edge
- USA Spending
-