#47377
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tweva
Survivalist
rreallife

I think Kashkari is a slick guy with some brains. I was sorry to hear he went the Goldman/now Fed route.

You know what still astonishes me? And, I purposefully, when the opportunity presents itself, bring the subject up to people I meet? (I deal with the general public a great deal) Most are shocked when I inform them that the bank, their local branch, 1) does not have the cash on hand equal to all the deposits made by local patrons and 2) yes, they ‘deposit’ money in the bank, but they really are no different than a stockholder of that bank – except of course for the FDIC limits/insurance – for what that is worth. Many Americans simply do not even understand the basics of general banking in this country …much less high finance…3) if I give a short recap of what happened in Cyprus – ‘oh that could never happen here’. Really? Why not? Might want to think about that is all I can end the discussion with.

The ‘big banks’, are no better than the governments and big firms they are in bed with. They are so big, so intertwined, so complicated in structure that one hand does not know what the other hand is doing. That’s well-understood – but I can’t figure out why the boards and CEO’s can’t see they have created a house of cards that a poof of breath, so to speak, by one trader, or one VP of some division can’t send it all down the toilet. They have proof this can happen. It just hasn’t had it happened big enough for them? Or, are they really so sure it doesn’t matter the government will bail them out. Really? Or is it that and a combination of egos like with Dimos and Blankfein? It makes no sense to me that they would create such elephants. They have created super tankers that take miles to stop, miles to turn…big lumbering things unable to shift direction or course quickly or easily. It is such a poor business model – just that fact – it still amazes me.