Let the world change you... and you can change the world

YASS (Yet Another Simple Solution)

Yesterday’s news about JPMorgan taking a $2 billion trading loss shouldn’t surprise anyone, since virtually nothing has changed about how Big Banks operate since the 2008 Wall St. meltdown.  And it’s more evidence that there’s nothing in place to prevent yet another repeat of 2008 and it’s just a matter of time until the next disaster hits.

The solution to the problem, like so many of our other big problems, is brain dead simple.  You bust up all the big banks, and you re-create the banking industry like it was pre-1980.  Specifically you limit the services a bank can offer to just savings and checking accounts, mortgages, and loans.  Period.  No securities speculation, no hedge funds, no derivatives — in short, NO GAMBLING.  You want to speculate, that’s fine, you do it with institutions set up strictly for speculation, and not dependent on government backing or guarantees or average citizen’s deposits.

There’s no downside to this solution whatsoever.  Yes, banks go back to being the boring, conservative institutions they were 50 years ago.  But hey, if you are a financial wizard who wants to gamble, then set up your own casino on Wall St. and play all you want, but just not with other people’s money.  And of course, that’s the catch.  The way it’s set up now, the banking industry is a playground for the one percenters, yet another way for them to steal money from the rest of us.  Without access to all the deposits of average citizens and without the government as insurer of last resort, the whole system collapses.  They can only steal from themselves.  And obviously there’s no future in that.  Which is, of course, the point.