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The Flaw in the System: The Bankers Don't Care About Banks



March 03, 2009 – Comments (5) | RELATED TICKERS: AOBC , RGR , WFC — Alan Greenspan says he is in a "state of shocked disbelief" that the concept of self-interest did not protect the banks from taking excessive risks and destroying themselves. But he, along with Tim Geithner and many others, are missing the fundamental flaw in the system. The bankers don't care about the banks; they care about the bankers.

by Cenk Uygur Mon Mar 02, 2009

Story is here: 

Comment by SatoriSeeker

The real flaws in the system -

Fiat currency: your money is a paper ticket with no intrinsic value, a unit of faith in the Federal Reserve

- Fractional Reserve Banking: banks create 90% of what they loan you out of thin air and then you work 30 years to pay them back money they never had in the first place

- Legal Tender Laws: force everyone to use the worthless tickets or go to jail, no free market in money for you - Federal Reserve: private corporation run by member banks, has never published its list of shareholders, has unlimited money creation powers

- FDIC: why take an interest in how unstable our monetary/banking system is if the Gov provides insurance on the tax payers dime It's not greed. It is the broken monetary system with unlimited powers of money creation, greed takes the path of least resistance to wealth, currently that path is to simply exploit the corrupt monetary system rather than providing goods and services to people to raise their standard of living.

Don't let anyone tell you capitalism has failed, the failure was too much government invention in the affairs of its people by mandating such a corrupt system that would never exist without government forcing it to be so.

A report here:

5 Comments – Post Your Own

#1) On March 03, 2009 at 9:10 PM, abitare (29.51) wrote:

I found this, I had been looking Taleb (Black Swan author) says "banks are designed to blow up"


This is the raw, unedited version of an interview with Nassim Taleb, author of The Black Swan and Fooled By Randomness. 


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#2) On March 03, 2009 at 9:13 PM, abitare (29.51) wrote:

The link is here to Taleb first video: 


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#3) On March 04, 2009 at 12:46 AM, tonylogan1 (27.49) wrote:

Some very nice clips... Keep em coming.

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#4) On March 04, 2009 at 1:11 AM, whereaminow (< 20) wrote:


Great post. Glad to see another voice pointing out the problems with the supply of money. I've gone back and read some of your older posts. I am blown away by your knowledge and understanding of our problems.

I love the videos, but TYT, as so many others, comes to the wrong conclusion.

He blames it on Capitalism. He describes a system built on paper money, corporate bureaucracy, CEO's with no personal stake in the company's they run, glorified bureaucrats assigning ridiculous bonuses, in a government regulated cartel of banking and investment banking..... AND CALLS IT CAPITALISM!

How insane is that conclusion? That's not Capitalism. Capitalism requires hard work, savings, and a personal stake in the operation. In other words, it requires capital. Our system of banking, investment banking, housing, energy, money production, food, etc etc etc  is not Capitalism. It is sordid mix of central planning, price controls, trade restrictions, fascism, socialism, and mercantilist traditions borrowed from colonial Britain. In other words, it's the same failed economic ideas of the last 4400 years or so, continued under the name Capitalism.

Why is it so important to refute the notion that Capitalism caused the crisis? Because it is in the interests of the very people that run our nation (into the ground) to discredit laissez faire at any opportunity. Only by deflecting the blame on the shadowy unknown called the "market", or a lack of authority on their part due to laissez faire policies (a laughable assertion if one applies critical thought to the situation), or the greed of Capitalists (read: individualists - nevermind their own greed and lust for power) can the collectivist oligarchy prevent their own demise.

It is unfortunate that men as educated as TYT about the roots of our failure can't see those roots in the proper historical context. It just goes to show how deep anticapitalist mentality in America has taken hold. Over the last 150 years, anticapitalist intellectuals in Europe and America have worked very hard to discredit Classical Liberal ideas - ideas responsible for the greatest rise in the standard of living in human history - ideas of hard work, savings, entrepreneurship, self reliance, responsibility, liberty, freedom from a coercive state.

They have succeeded.

The income tax, sales tax, Federal Reserve, fractional reserve banking, price controls on nearly every food item, cartels and monopolies in energy, transportation, education, medicine, banking, communication, security, on and on. The list is endless. How many 3 or 4 letter acronymed government agencies can you list just off the top of your head?

And they blame Capitalism! It's enough to make a rational human being scream!

If the anticapitalists of the world wish to blame anyone, they can look in the mirror. This paper money paradise they built to enable wealth transfers ( a small amount for the poor, a large amount for the powerful) is their creation.

In the words of Jim Mora: "Capitalism?  Are you kidding me?  Capitalism?  It's your system and you're blaming it on Capitalism?"

David in Qatar


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#5) On March 04, 2009 at 8:44 AM, abitare (29.51) wrote:


Thank you for the replies.

David in Qatar,

Concur about the TYT should not be blaming capitialism. I posted the Friedman vidoe to counter and provide more of my view. 

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