Logic would seem to tell us, that the loaning of money to people and businesses, should be one of those things, in which a small but steady profit should be made, by those banking institutions, and nothing much more. That is to say, in a truly competitive environment in which banks, credit unions, and the like are truly competing against one another, the access to that money so being loaned would have to be competitive, and thereby the cost to the consumer and businesses to obtain those loans would be reasonable, and hence the cost of that money to those receiving those loans, would be manageable. That, at least, is the theory, but the reality is completely different.
What we so find is that first and foremost, any business enterprise in which the biggest players within that enterprise are thereby designated by this government as “too big to fail,” are clearly implicitly dangerous in their construct to that nation. In other words, the current situation in which when times are good, that these mega banks are thereby enabled to make billions upon billions of dollars in profit, through the mere loaning of money, or via leveraged investment schemes – in which, in addition, we find that the biggest and largest of these mega banks, have been effectively backstopped by the federal government, so that when those loans go bad, or those leveraged bets run against these mega banks, that they are thus bailed out by that same government -- effectively makes these mega banks the most desirable of all businesses, because these mega banks can never lose; of which, in essence, the profits so made are functionally privatized, representing thereby a form of monetary extraction from the pockets of one’s own citizens and businesses -- and when these mega banks subsequently suffer massive losses to the extent of insolvency, they are, in essence, made good by those very same citizens as so authorized by that government.
In order for business transactions to seamlessly be accomplished, the coin of the realm, as thereby represented by our currency of dollars that are utilized physically as well as electronically via interactions between businesses and people, so occurs This thus signifies, that those institutions that control those dollars in the sense of the availability of that money, the cost of that money, such as in interest rates, and the liquidity of that money, have an incredible amount of influence over not only the general economic conditions of that nation, but effectively over the people, themselves – because the people thereby need fair access to such in order to successfully conduct their affairs and take care of their responsibilities. In other words, banks, have untold power over the people and businesses, in which, for whatever reason, this government, enables those banks to extract profit and thereby to have dominion over the people and those businesses; whereas, sensibility tells us that a far better way for the people and businesses to relate to the coin of the realm, would be for those banking institutions, to be within their structure, non-profit, and thereby never conflicted about what they should or should not do, as opposed to our current corrupt state of affairs, in which the game is permanently fixed in favor of those mega banks for no good reason, whatsoever.