One of the primary contradictions of a democratic society with a free-market is that to survive, we can't allow most business monopolies. When one company gets the upper-hand, it likely destroys its segment of free enterprise.
The United States did a pretty good job of balancing this, at least since the end of World War II. We had anti-trust laws with teeth in them and legislators watching over them because the public demanded it.
But that has changed, and it has changed almost exponentially in recent years. Huge banks controlling billions of dollars in customer deposits and loans. Carpet mills sucked up by others until now when almost all of the carpet used in America is manufactured by just three mills. Brokerage houses, once general partnerships, turned into stock companies so that they could grow to gargantuan size, and those running them not have their own entire personal wealth on the line.
The economic trouble the United States is in today is primarily the result of lax anti-trust laws that allow and approve monopolies. And those laws became lax and monopolies grew because our system doesn't see anything wrong with having paid lobbyist influence and often times write our legislation.
What should Americans do? What Americans should do is find one or more good locally owned, locally managed commercial bank...ones whose business doesn't take place at counters in grocery stores, and move their accounts there. And under no circumstance exceed the amount of insured deposits.
Here's why because here's what's in store for us next. You'll extrapolate why monopolies are so dangerous to us and our society.
NEW YORK (Reuters) - Citigroup Inc is looking at putting risky assets in a government-supported "bad bank" -- a step to reassure investors that the rest of its assets were safe, reports said on Sunday.
Following are five facts about Citigroup, whose shares have plummeted 87 percent so far this year.
* City Bank of New York opened for business in New York City on June 16, 1812 with $2 million in capital. Today, Citigroup is New York City's second largest private employer.
* Citicorp merged with financier Sanford Weill's Travelers Group -- itself a combination of insurer Travelers, brokerages Salomon Brothers and Smith Barney and financial planner Primerica -- in 1998.
* Citigroup has 200 million customers in more than 100 countries across six continents. It is the world's largest provider of credit cards.
* Citigroup was the world's largest bank by market value as recently as 2007, when it was worth more than $250 billion. At Friday's close it was worth just $20.5 billion, making it smaller than each of Canada's top three banks.
* Citigroup had been the top U.S. bank by assets until it was overtaken by JPMorgan Chase & Co in October. Citigroup ended September with $2.05 trillion in assets, compared with $2.25 trillion at JPMorgan.
Copyright 2008 - William S. Cherry
All rights reserved
BILL CHERRY, REALTORS
DALLAS
Our 44th Year Selling America
214 503-8563
800 314-7110
Bill C,
I'm not a fan of big banks, ether! These financial behemoths have long since forgotten their stock holders and customer and now work only for the enrichment of their own management. Forgetting their duties to their stock holders and customers. It's understandable, they are so big that they don't know stock holders or customers, they have all ben reduced to account and/or certificate numbers.
I have two reasons to use local banks and local credit unions. They know me, I'm more than an account number and credit score! Local bank have to lend in their local area and like all banks they have to put money to work. Your deposits are going to help your local economy, based on common sense decisions about real people, not logarithms formulas!
Every one need to belong to at least one credit union and a local bank. If the time comes when you need a very big bank they will be their. I have an account with WaMu, non City, they are so friendly that they gave me a nick name, when my turn comes up they smile and say Next. My credit union says, Hi Mr. Archambault how's Brenda? No nick names, Mr Archambault, guess which one I like?
Bill
You see, Mr. Bill....you absolutely have a handle on every one of the benefits.
When a Citibank accountholder's husband goes into the hospital for an emergency, let's see how well his wife does when she goes to the grocery store bank window and attempts to make a bridge loan.
But even worse, as you pointed out, local banks cause the local economy to prosper, and they do it with the money you and I and others deposit there. Nationwide banks simply don't do that, in the main.
I was sitting in a local bank president's office with the door closed a few years ago. We were talking about bidniz. All of a sudden, the door swung open and an irate man came in and told the president that he was an idiot for not approving his loan and that he was going to buy the bank and fire the president.
My friend calmly said, "And best not expect us to make you that loan either."
Bill...I think The past few years and what is to come should be the subject matter for your next book!
Miss Joanie, I'm honored that you would suggest I'm smart and wise enough to write such a book. Darned, I have to quickly admit that I'm not even close.
What I have learned in recent years is this: By far the majority of our problems, both personal and as a nation and a world, are the result of lack of honor and morality.
That one can do something that is not specifically against the law does not make it honorable and moral. What our parents taught us, their parents taught them, and their parents taught them has, in the main, been terribly watered down.
Not only are people acting up, but we've resigned ourselves that it would be useless to punish them and hold their feet to the fire. It seems to me that would be a good book for someone witha powerful personal reputation and credibility to write.
Happy Thanksgiving! I pray things are getting better for you and Mr. Mirantz way op there in Concord.
Bill