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Ashamed-Confection44 t1_iugk6ix wrote

Reply to comment by throwitawayCrypto in Lehman moments by ProudHeron5768

You are exactly correct. It wouldn't be this way if governments hadn't over regulated the last forty years, but it was intentional. They put small banks out of business with paperwork alone. Now we have a bunch of too big to fail institutions that are joined at the hip.


ShaolinShadowBoxing t1_iuh19ni wrote

Fucking lmao at over regulation from the government causing this issue


HumbledB4TheMasses t1_iuhhced wrote

Don't you get it? The gooberment is hellbent on *checks notes* creating privatized systems of power which rival it's own control with their own independent goals.

Oh wait, that is the polar opposite of any interest any government could ever's almost like our government has been bought and paid for for decades now!

This MF'r sees a fox in a hen house and yells at the hens for being victims lol


Jimmyking4ever t1_iuiytnn wrote

You see the reason why the boat sank was because there wasn't ENOUGH water in the boat. We just need more water and we'll be fine!


Ashamed-Confection44 t1_iui3x8f wrote

You have no idea how it works. The biggest banks beg for more regulation. The administrative costs of government over regulation is what drove the small banks out of business. I'm assuming I'm quite a bit older than you. In the 80s there was a guy that lived in our neighborhood that literally owned a bank. He was not rich, but he owned a bank.

Talk to someone that was in banking in the 80s. Every couple of years the government would add so much required paperwork that banks would have to add personnel just to complete it. If your bank had one branch, it could break you. If you had 25 branches, no big deal.

It's funny how you think big government libs aren't in the scam with big business.


ShaolinShadowBoxing t1_iuiqfyj wrote

Just so we get this straight, big government libs have conspired to create so much paperwork that small, independent banks couldn’t fill out the papers so they went out of business? Why didn’t your obviously precious small government conservatives save them by reducing the paperwork? It’s almost like nothing you said has anything to do with fucking anything lmfao


Puzzleheaded-Hall454 t1_iugs7wk wrote

That’s what the government wants. It’s all by design. And who really ends up holding the bag when this is done? We as citizens. It impacts us as additional inflation after we print more funny money which is already rampant and killing countries.


Firemorfox t1_iui337z wrote

The fuck do ya mean, "over regulation"?

Are you living in a different country than the US, perhaps?


Ashamed-Confection44 t1_iuielul wrote

Look, I'm a lot older than you. Big business has convinced you that regulation is meant to protect the little guy. It's not. It's meant to put the little guy out of business. Have you ever known an individual that fully owned a bank? I've known several. In the 70's and 80's their were little banks all over the country owned by individuals. The additional regulation of the 90's put them out of business and the big banks bought them up. Find a 90 year old retired banker and they'll explain to you how the system really works


Firemorfox t1_iuih1eo wrote

My point was that there was an explicit lack of regulation for larger institutions especially banks and investment firms.

I understand now that by “over-regulation”, you meant the paperwork, fine print, and laws that drag down smaller companies. I had thought you referred to “over-regulation” that is applied to banks and larger institutions, which is why I disagreed with you.

I think it’s clear we both agree that generally US business regulation as it stands is under-regulated for the rich and over-regulated for the poor.


Ashamed-Confection44 t1_iuii5ik wrote

The Fiat system must have ups and downs. It will have bankruptcies and failures. It has too. that's just the way it works.

Over the years, the small banks were choked out with regulation. Now, everything that is left is "too big to fail". The economy and banks are not in trouble due to a lack of regulation (there is definitely a lack of enforcement in some cases). They are in trouble because we've reached a point where there is too much debt in the system and not enough capital to pay it off.

With any debt failure, it is wiped off the books and eases demand on the dollar. If a thousand small banks across the country were to fail you might not even notice it where you live. If Credit Suisse fails, oh you'll notice it.


animalinstinct10m t1_iuiodn6 wrote

Both of you are saying the same thing. Age has a little to do with it but more general business dynamics.

People tend to forget banks are businesses too. Just like big box retailers displaced small businesses, so did larger banks.

"Over regulation" was a symptom of over leverage in the system at large. Not the government purposely using it as a tool to disadvantage smaller banks. It was a negative externality.

There was the S&L crisis before the financial crisis and with each subsequent crisis, there is a regulatory effort to prevent the next crisis.

There are many other hurdles for global money center banks, investment banks, etc. including Basel.

Public companies in general had to deal with SOX after 2000 and the dot com bust.

In the end, it comes down to economies of scale and operating leverage. The regulations help to limit the degree of financial leverage generally and does impose significant administrative burdens on smaller institutions but those dynamics broadly apply in various regulatory incarnations across industries.


pablogmanloc t1_iui0zwh wrote

Doing the same to my small business. Making it harder and harder by bogging down with rules. Seeing a lot of large companies buy smaller ones in the food industry. I think that is what they want since they can control a few large companies, but not not hundreds of small ones...


Ashamed-Confection44 t1_iui2i8x wrote

The big companies donate to politicians and DEMAND more regulation. They want to buy you out, but they don't want to pay top dollar. They need the government to break you first.