I’m not posting a lot of my own stuff this week, but I wanted to point you toward Michael T. Snyder’s blog entry today:
“Too Big To Fail?: 10 Banks Own 77 Percent Of All U.S. Banking Assets“
His blog entry contains a devastating amount of information that concludes with saying the ‘too big to fail banks’ are likely to fail soon, one of which is Bank of America. And even as I finished reading the essay, the first third of which I posted below, then I read this news: “Bank of America needs 50Billion or may go bankrupt“
And of course, there was a bank run and a stocks shedding.
Here is Michael T. Snyder’s excerpt of today’s blog entry, I recommend it in its entirety.–
“Back during the financial crisis of 2008, the American people were told that the largest banks in the United States were “too big to fail” and that was why it was necessary for the federal government to step in and bail them out. The idea was that if several of our biggest banks collapsed at the same time the financial system would not be strong enough to keep things going and economic activity all across America would simply come to a standstill. Congress was told that if the “too big to fail” banks did not receive bailouts that there would be chaos in the streets and this country would plunge into another Great Depression. Since that time, however, essentially no efforts have been made to decentralize the U.S. banking system. Instead, the “too big to fail” banks just keep getting larger and larger and larger. Back in 2002, the top 10 banks controlled 55 percent of all U.S. banking assets. Today, the top 10 banks control 77 percent of all U.S. banking assets. Unfortunately, these giant banks are also colossal mountains of risk, debt and leverage. They are incredibly unstable and they could start coming apart again at any time. None of the major problems that caused the crash of 2008 have been fixed. In fact, the U.S. banking system is more centralized and more vulnerable today than it ever has been before…”