Contempt For Banks

On his radio show today, Dennis Prager said: “You know how much fear I have for big government. My contempt for most banks in the world is deep as it is for big government.”

“The profession of banking has soiled itself so often. You don’t have to be on the left to acknowledge how incompetent or corrupt so many in banking have been.”

Dennis Prager talks like this is a moral problem among bankers. I suspect the problem is one of incentives and that most people in that position would act similarly. Bankers get to keep the massive gains they can make from gambling with their money while banks get bailed out if they lose. So losses are shared with the public while huge gains are in private hands. The incentives that bankers face are to gamble rashly. If they win, they win big and get to keep a good chunk of change. If they lose, they get bailed out.

Dennis: “The [real estate] bubble burst and now there’s a run on the banks in Spain. The biggest bank in Spain has a garbage rating from the agencies. Junk. There’s no liquidity. No money in Spain. So they want the Euro to bail them out. I think the Euro could collapse, at least in certain countries, in the course of the next year. The breakdown of nationalism was a bad idea but Europeans don’t trust nationalism. Why? Because the Germans used nationalism as a racist tool to exterminate people, therefore nationalism is bad?”

“What are you then? People aren’t European. You might as well say we’re North American. How many people listening feel North American? Zero. You feel American or Canadian or Mexican. Do you think Mexicans feel bonded to Salvadorans because they’re both latino?”

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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