System Risk
This weekend the European countries again couldn't make a front to tackle the “Euro-crisis”. First the choice of the word Euro-crisis is misleading; it is nothing more than an ordinary financial crisis of which we have seen so many already.
The banking industry is holding society hostage all over the world but lately especially in Europe. One currency and 27 members what do you get? A perfect mess and a playground for mutual funds to rip society off.
It is not a gamble but a certainty that the “Euro-crisis” will not be solved. Politics and banking industry are tightly entangled so the interests of the banking industry is well protected. The ordinary citizen however cannot risk a total failure of the financial system; his income, house, savings, pension etc are at stake. Bankers and politicians have secured their future. They are not depending on a healthy economy. They cannot be trusted to take care of the economy; private priorities overshadow the precedence of the people.
The infamous “System Risk” big banks signify for society is that when a big bank goes into bankruptcy their clients cannot access and lose their (saving) accounts. Other banks which have interests in this bank will probably collapse as well and therefore other banks; the House of Cards collapses.
Everybody loses the possibility to transfer assets. The economy comes to a disastrous halt and collapses beyond imagination. This system risk must whatever the costs be avoided. It will cost society not a penny to annihilate the menacing consequences of this “System Risk”.
It is in principle simple to separate the savings accounts and paying services of banks from the hazardous Investment Banking activities. The Central Bank can become the legal owner of the payment services and the accounts; these essentials will then not be influenced by the investment bank default: the System Risk is avoided.
When investment banks go bankrupt nothing is lost that is not lost already. The System Risk of banks must be avoided. The public should come up for their interests, demand legal separation and save the economy because you could never and still can’t trust politicians and bankers.
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