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Banks are never too big to fail-and will we bail them out again?

 

“If You Are Too Big To Fail, You’re Too Big”:

By Stacy Curtin | Daily Ticker – 19 hours ago-5-3-12                                               


Nearly four years after U.S. taxpayers bailed out Wall Street, the debate over how to deal with America’s too big to fail banks rages on.

One very outspoken critic of TBTF banks has been Dallas Fed President Richard Fisher.


“The TBTF institutions that amplified and prolonged the recent financial crisis remain a hindrance to full economic recovery and to the very ideal of American capitalism,” Fisher wrote in the Dallas Federal Reserve’s 2011 annual report entitled “Choosing the Road to Prosperity: Why We Must End Too Big to Fail — Now.”

He joined The Daily Ticker’s Aaron Task at the Milken Institute’s 2012 Global Conference in Los Angeles to discuss the threat posed by TBTF banks.

“Five banks have 52% of all the deposits in the industry and they are now bigger than they were before we got into the crisis,” explains Fisher. That’s compared to 1970 when the top five banks maintained just 17% of all deposits. “We’ve had this huge amount of legislation called Dodd-Frank — thousands of pages, hundreds of sections — and it is has not solved the too big to fail problem.”

In fact, the combined assets of the top 10 banks equal half of America’s total GDP, according to the Dallas Fed’s annual report.

“There is an inherent injustice in being too big to fail because you are implicitly getting a subsidy from the government,” says Fisher. “They don’t have to be these giant depository institutions that are underwritten by the taxpayer.”

Not only do TBTF banks pose a threat to the U.S. taxpayers and financial system, they are also to blame for the slowest economic growth since the Great Recession, says Fisher. In an earlier segment with The Daily Ticker, he explains there is currently enough “gas in the tank” from Fed policy to jumpstart a recovery, but policymakers won’t step on the gas pedal in terms of jobs creation, which Fisher also attributes to the issue of TBTF.

“Dodd-Frank has made it very difficult from a regulatory burden standpoint for community and regional banks,” Fisher says. “These are the people who lend to small businesses [and] small businesses create the majority of jobs in America.”

He believes Dodd-Frank “penalizes community and regional banks” and even “interferes with the proper connection of monetary policy to the economy as a whole.”

If the problem is not solved, he believes another crisis will hit again, at some point in the future.

“If you are too big to fail, you’re too big,” he says.

 

US – HIghest taxes in the World

Obama: U.S. Will Be Highest Taxed Country In The World

ELECT HERE NOW TO
TELL CONGRESS
TO STOP OBAMA’S TAX HIKE SCHEME!

Our spender-in-chief is committing extortion right under our noses. Obama is pushing his plans to increase the payroll tax by 2.5%.That means the total tax rate would be raised to 47% making America the highest taxed countryin the world!

The payroll tax affects every single American who gets up to go to work. Even though employers are responsible for collectingthis tax, the tax is ultimately passed on to the employee. I guess Obama wants to make up for the tax revenue lost from the people he put out ofwork.

As “smart” as the Liberal elite think they are, raising taxes when the economy is in ruins and jobs are scarce is beyondidiotic. Contrary to what the Dems think, when employers are hit with Obama’s payroll tax they won’t jump for joy – they will begin laying peopleoff because they can’t afford the extra taxes. Obama seems to think you don’t deserve to keep your money or your job.

NO MORE TAX INCREASES!
SELECT HERE NOW TOTELL CONGRESS TO
STOP OBAMA’S TAX HIKE SCHEME!

Obama’s power-abusing trip doesn’t end there. Not satisfied withkicking regular Americans while they’re down, he’s also proposing a 62% tax rate for high income earners. Welcome back to the 1970s, where underJimmy Carter the highest tax rate was at a whopping 70%! Keep in mind Obama’s tax hikes will be in addition to the upcoming tax increases that will take effect when the Bush tax cuts expire in 2012.

Progressives in Washington want to repeal the Bush tax cuts (taxbreaks for people who make $250,000 or more.) On their campaign to gain support for axing the tax cuts, the Dems vilified the recipientscharacterizing them as “rich” and “undeserving of the money they earned.” In reality, people who receive the Bush tax cuts aresmall businesses, married couples and JOB CREATORS.

NO MORE TAX INCREASES!
SELECT HERE NOW TOTELL CONGRESS TO
STOP OBAMA’S TAX HIKE SCHEME!

The Democrats have a lot more up their sleeves. They’ve leviedadditional taxes on investment income and are pushing for more tax increases on capital gains. Apparently the 3.8% ObamaCare investment taxwasn’t enough. When will their taxation spree end? If the Dems succeed in repealing the Bush tax cuts, the capital gains tax rates will rise from15% to 22%.

While most of us aren’t lucky enough to be high earners, that doesn’t mean we will be immune to Obama’s frantic scramble to payoff the debt he created. Letting the Bush tax cuts expire and forcing the rich to dump more of their money in Obama’s special interests piggy bankwill kill any chance we have for an economic recovery.

NO MORE TAX INCREASES!
SELECT HERE NOW TOTELL CONGRESS TO
STOP OBAMA’S TAX HIKE SCHEME!

Obama said that we need tax hikes to pay down the deficit. Wait -wasn’t it Obama who is responsible for the biggest spending spree in history? I’d like to see Obama volunteer to give up his fortune to UncleSam. A tax hike will not help pay off our deficit, in fact, it won’t even make a noticeable dent in the debt. I’m not sure why Obama and hisbuddies are spending all this time trying to figure out how to cut down the deficit when the answer is so simple – cut spending and stop the taxincreases!

There it is -Obama and his cronies have shown they have NO interest in an economic recovery- theywant to make tough times tougher!

THEY JUST DON’T GET IT — but they WILL “get it,” if the American people make their voices heard LOUD AND CLEAR again