Financial Presstitutes Cover Up for the Big Banks Paul Craig Roberts
Financial Presstitutes Cover Up for the Big Banks
August 7, 2017
Cover Up for the Big Banks
Paul Craig Roberts
The big New York banks no
longer perform the banking function of lending to consumers and businesses.
Thanks to government policies that foster increased financial concentration,
banking incentives have changed fundamentally. The big banks today are focused
on higher risk-return speculation and on trading and fee-based income.
Banks don’t lend not
because, as banks and their lobbys claim, of new capital requirement rules, but
because their ability to lend is foreclosed by the fact that the big banks pay
out all or more than all of their net income in dividends and buy-backs of
their own stocks in order to drive up executives’ bonuses. The extraordinary
payouts of earnings leave the banks’ capital position too weak to support more