Banks Are Obsolete: The Entire Parasitic Sector Can Be Eliminated (February 20, 2014)
What else can we do with the $1.25 trillion we’ll save by eliminating these obsolete financial middleman parasites? A lot.
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The entire notion that 100 savers put their money in a bank which then buys a mortgage with their savings and sells it as a security that supports a pyramid of derivatives is obsolete. Each saver can directly own (and sell on a transparent market) a piece of a mortgage, auto loan, business loan, etc. There is no need for a middleman banking sector at all–no skim, no concentration of risk, no opportunities for selling derivatives to unwary investors. All that goes away with the banking sector.
But what about holding deposits? We already have two institutions that could serve this role: credit unions and the post office. If those holding depositors’ cash do not issue loans, they have no source of income to defray operating expenses. The solution is obvious: charge fees for holding deposits and payor-payee transactions.
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And what about WalMart as the “bank” for the poor and middle class?
I see the politicians and bureaucrats whine about Payday Loans and Title Loans.
WalMart could be a great “bank” for the little guy!
The Sheeple are so dumb and the Gooferment enables them!
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