BANKING: CREDIT UNIONS ARE GOOD. BIG BANKS ARE BAD. AND WHY Banking is a means o

BANKING: CREDIT UNIONS ARE GOOD. BIG BANKS ARE BAD. AND WHY

Banking is a means of allowing people with disparate knowledge, means, goals to cooperate by concentrating their capital and cross-insuring each other. Banking is a GOOD BUSINESS for society and society as we understand it is not possible without banking.

Now, when you get service charges, this is just charging you for the costs you put onto the bank. THis is a GOOD IDEA because otherwise people who do a lot of bank work force people who don’t to pay all oft of costs. That would be an involuntary transfer. That’s bad. It’s stealing.

The problem occurrs when the state starts putting funny money into banks and creating a ‘hazard’ by doing so. They allow banks to make risky loans. and those risky loans increase consumption at the expense of creating a fragile economy.

The argument that Keynesians make, is that we get more good out of that fragility than we do bad.

And that’s not a truth. It’s a matter of preference.

And the people who would prefer not to have booms and busts that are caused by the government, because they take risks because the cost of money is cheap, and the pricing information that they see around them is distorted. Then the rug is pulled under them by the fragility and it all comes crashing down into a recession and depression.

Credit unions are good things.

Use them.

Big banks are for conducting war. That’s why we have them. thats where they came from. that’s what they do.