Four-step bank fix

4 Nov 2009

Four simple, concise, well-though-out, easy-to-follow steps to reforming our financial industry by the always insightful and proactive Dylan Ratigan.

1. Inject transparency, primarily to bring almost $600 trillion of crooked insurance scams to the forefront. Force almost all swaps onto exchanges, not just the 20% as current proposed reform does.

2. Demand capital to back Wall Street’s gambling. As Tyler Durden at said about this clip from the show, do this and it is a guarantee that very few firms will have Goldman’s trading pattern each and every quarter.

3. Enact a tax-code to encourage long-term investment and discourage short-term profit. Fortunes should not be made in minutes but over years through the creation of value to society.

4. Break up the Too Big To Fail banking institutions. Start with Goldman Sachs and J.P. Morgan. Right Now.

Expanding on Dylan’s third pillar, Umair Haque has some good pieces on the difference between creating wealth and capturing wealth, under the umbrella of what he calls Constructive Capitalism.