Making banking a public utility

Economist Michael Hudson interviewed on TheRealNews (10 min)

The points Hudson makes in this short interview are in many ways similar to the ones made at the Automatic Earth; namely it's all very well to protest the financial system, the banksters etc. but to expect their behavior to change in response is not realistic. They will do whatever they are allowed to do. If the last three decades saw a steady de-criminalization of fraud, the fraud can't be expected to stop on its own just by the force of people's discontent.

Certainly, expecting the industry will police itself is like expecting a hyena to restrain its appetite when you let it loose among a flock of sheep. Expecting that people protesting the banksters directly will have any effect on their behavior is like expecting the hyena to change its habits when the sheep start crying: You bad hyena!  The hyena will just roll on the ground laughing.

Banking, Hudson says, is a public utility, and nothing will change unless it's treated and regulated as such.

Washingtonsblog summary of what Hudson says on the interview:

Prominent economist Michael Hudson explains that the financial system is so fundamentally broken and corrupt that the message of the Occupy Wall Street protesters can’t be reduced down to a handful of “technocratic fixes”.

Hudson also said:

  • Bank of America, Wells Fargo and Citibank are crime gangs (Background)

  • Obama is backing de-criminalization of fraud (Background)

  • Obama doesn’t want to create jobs; instead, he wants to reduce wages by 30% (Background)

  • Geithner is just a bank lobbyist, and shouldn’t be in charge of treasury (Background here and here)

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