The big banks are still too big to fail.

The big banks are still too big to fail.

The big banks are still too big to fail.

Really. We didn’t actually reform all that much after 2008 and now we’re at an even bigger risk than we were before because now they know that they’ll get bailed out. See: Moral hazard.

Congress made a nice showing of reform, but mostly what they did had to do with debit card fees, not the problems inherent in having huge banks that have both investment and commercial banking branches, something we stopped during the great depression.

Big banks aren’t the fuel of our economy, capital is. They are not indispensable. We don’t need Chase, we don’t need Bank of America. They provide zero value add to our economy. They provide zero additional liquidity beyond what a smaller bank or a credit union can provide.

We can break them up into little hundred million to one billion dollar banks and they will be just as efficient and profitable as they were before. Only now it’s much less of a risk when one or two of them does something risky, because now you can nationalize the bank and sell it far more easily than you can the multibillion dollar behemoths that congress has allowed to expand from commercial banking into investment banking.

The former is boring and not particularly profitable. That’s good. You want bankers to be boring. People put money in banks because they know the money will still be there when they need to pull it out. You don’t want them acting like they’re day traders, which is what they’re doing now. There is actually an important role in our economy for investment banking, but you don’t want them doing it with money guaranteed by the federal government because they’ll just keep taking chances until we lose.

They’re gambling with all our money. And when they run out of money the house just loads them up again with interest free loans.

You want to protect your money? Take it out of a bank and put it into a credit union. Let your senator and congressperson know that you did. Let your mayor know, and let them know that they should protect the city’s money by putting it into a credit union.

We are the engine of the economy. Capital is the fuel. It’s time we took away the gas from banks that are playing with fire near our homes.