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Home Publications Blogs Beat the Press The Post Tells Readers That Small Banks Have More Power Than Big Banks

The Post Tells Readers That Small Banks Have More Power Than Big Banks

Thursday, 10 June 2010 04:36

It's great that the Post is able to find the truth in such matters. It told readers:

"For all of Wall Street's money and power, it has been a different army of lobbyists that has proven most effective over the past year in shaping the financial overhaul legislation on Capitol Hill. Again and again, big banks have been outpaced by small-town interests, proving that even when it comes to overhauling financial regulation, politics really is local."

Let's see, two years ago the big banks were rescued from bankruptcy by the helping hand of Big Government. Today, they are again making record profits and awarding record bonuses to top executives. Congress never seriously considered breaking them up and taking away the implicit government security blanket of "too big to fail," a subsidy that could be as much as $36 billion a year. It also is unlikely to impose the sort of Glass-Steagall separations that would prevent the big banks from speculating with taxpayer insured dollars.

Some people might think that this outcome suggests that the big banks are calling the shots. Thankfully we have the Post to tell us otherwise.

Comments (1)Add Comment
The Big Need the Small to Justify the Big
written by izzatzo, June 10, 2010 7:34
Large banks are like ex-CEOs Meg Whitman or Carly Fiorina who simply buy their political positions through mass market images of the personal "you can make it like me" combined with the more heavily concealed "we have to be big to compete" qualifier that always emerges later.

The notion of "competition" has been reduced in the Teabagger public mind to bizarre, conflicting contexts, like Rand Paul performing elective Lasik Surgery as if he were a John Galt of Ayn Rand running around building skycrapers of health care.

There was an earlier day when winners didn't take it all, but not anymore. Competition is essentially dead except in certain areas of organized sports where it's intentionally maintained as a museum model of what used to be, or for labor below the professional class, where it thrives as a mocking insult to those who must face it as administered punishment for not having enough luck or power to avoid it.

The public relations game of the few, concentrated powerful winners is to constantly divert attention to the millions of small players around them as shining examples of free wheeling "competition" when in fact, they're totally dependent on the large players for their economic existence.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.