do you know what the federal reserve is?

[jpinpb]

I found a video, for those who can’t sit in front of a computer to read, you can just play it in the background Creature From Jekyll Island – A Second Look at The Federal Reserve

[davelj]

[quote=jpinpb]To be fair to both sides, I’d have to agree that a bank must incur some expenses for its buildings, whether owned or leased, for all is employees, starting from tellers on up to CEOs, etc. etc. That’ll cut into some of the profit. But judging from the bonuses given, I’d say there’s plenty of profit. If this did not work in the banks’ favor, I’d imagine they would ALL be out of business. They wouldn’t continue to operate. There’s some major profits being made.[/quote]

I’m guessing when you say “bonuses given” you are referring to the largest 20 commercial banks and largest dozen investment banks, as these are the only bonuses that make headlines. These institutions make up, oh, less than one half of one percent of the banks in the US (although, about 60% of total assets – which is the big problem). Over 90% of the banks in the US have less than $200 million in assets with CEOs that earn about $150K annually, which includes benefits and bonuses (when there are bonuses). Now, that’s a nice living, don’t get me wrong. And particularly if you live in Jerkwater, USA, which is where a lot of these banks are. But, I wouldn’t exactly frame it as getting rich at the unknowing public’s expense, which is clearly what Griffin implies. And, again, the owners – as opposed to management – certainly aren’t getting rich with 10% returns on their (very risky, generally illiquid) capital (over a few cycles), although it’s certainly been a reasonable return historically.

I’ve said this many many times here at the Pig, but it bears repeating: When you discuss “banks,” you probably need to note exactly what type of banks you’re referring to. Without context, the word “banks” often doesn’t convey sufficient meaning for an intelligent discussion.

[davelj]

[quote=jpinpb]To be fair to both sides, I’d have to agree that a bank must incur some expenses for its buildings, whether owned or leased, for all is employees, starting from tellers on up to CEOs, etc. etc. That’ll cut into some of the profit. But judging from the bonuses given, I’d say there’s plenty of profit. If this did not work in the banks’ favor, I’d imagine they would ALL be out of business. They wouldn’t continue to operate. There’s some major profits being made.[/quote]

I’m guessing when you say “bonuses given” you are referring to the largest 20 commercial banks and largest dozen investment banks, as these are the only bonuses that make headlines. These institutions make up, oh, less than one half of one percent of the banks in the US (although, about 60% of total assets – which is the big problem). Over 90% of the banks in the US have less than $200 million in assets with CEOs that earn about $150K annually, which includes benefits and bonuses (when there are bonuses). Now, that’s a nice living, don’t get me wrong. And particularly if you live in Jerkwater, USA, which is where a lot of these banks are. But, I wouldn’t exactly frame it as getting rich at the unknowing public’s expense, which is clearly what Griffin implies. And, again, the owners – as opposed to management – certainly aren’t getting rich with 10% returns on their (very risky, generally illiquid) capital (over a few cycles), although it’s certainly been a reasonable return historically.

I’ve said this many many times here at the Pig, but it bears repeating: When you discuss “banks,” you probably need to note exactly what type of banks you’re referring to. Without context, the word “banks” often doesn’t convey sufficient meaning for an intelligent discussion.

[davelj]

[quote=jpinpb]To be fair to both sides, I’d have to agree that a bank must incur some expenses for its buildings, whether owned or leased, for all is employees, starting from tellers on up to CEOs, etc. etc. That’ll cut into some of the profit. But judging from the bonuses given, I’d say there’s plenty of profit. If this did not work in the banks’ favor, I’d imagine they would ALL be out of business. They wouldn’t continue to operate. There’s some major profits being made.[/quote]

I’m guessing when you say “bonuses given” you are referring to the largest 20 commercial banks and largest dozen investment banks, as these are the only bonuses that make headlines. These institutions make up, oh, less than one half of one percent of the banks in the US (although, about 60% of total assets – which is the big problem). Over 90% of the banks in the US have less than $200 million in assets with CEOs that earn about $150K annually, which includes benefits and bonuses (when there are bonuses). Now, that’s a nice living, don’t get me wrong. And particularly if you live in Jerkwater, USA, which is where a lot of these banks are. But, I wouldn’t exactly frame it as getting rich at the unknowing public’s expense, which is clearly what Griffin implies. And, again, the owners – as opposed to management – certainly aren’t getting rich with 10% returns on their (very risky, generally illiquid) capital (over a few cycles), although it’s certainly been a reasonable return historically.

I’ve said this many many times here at the Pig, but it bears repeating: When you discuss “banks,” you probably need to note exactly what type of banks you’re referring to. Without context, the word “banks” often doesn’t convey sufficient meaning for an intelligent discussion.

[davelj]

[quote=jpinpb]To be fair to both sides, I’d have to agree that a bank must incur some expenses for its buildings, whether owned or leased, for all is employees, starting from tellers on up to CEOs, etc. etc. That’ll cut into some of the profit. But judging from the bonuses given, I’d say there’s plenty of profit. If this did not work in the banks’ favor, I’d imagine they would ALL be out of business. They wouldn’t continue to operate. There’s some major profits being made.[/quote]

I’m guessing when you say “bonuses given” you are referring to the largest 20 commercial banks and largest dozen investment banks, as these are the only bonuses that make headlines. These institutions make up, oh, less than one half of one percent of the banks in the US (although, about 60% of total assets – which is the big problem). Over 90% of the banks in the US have less than $200 million in assets with CEOs that earn about $150K annually, which includes benefits and bonuses (when there are bonuses). Now, that’s a nice living, don’t get me wrong. And particularly if you live in Jerkwater, USA, which is where a lot of these banks are. But, I wouldn’t exactly frame it as getting rich at the unknowing public’s expense, which is clearly what Griffin implies. And, again, the owners – as opposed to management – certainly aren’t getting rich with 10% returns on their (very risky, generally illiquid) capital (over a few cycles), although it’s certainly been a reasonable return historically.

I’ve said this many many times here at the Pig, but it bears repeating: When you discuss “banks,” you probably need to note exactly what type of banks you’re referring to. Without context, the word “banks” often doesn’t convey sufficient meaning for an intelligent discussion.

[davelj]

[quote=jpinpb]To be fair to both sides, I’d have to agree that a bank must incur some expenses for its buildings, whether owned or leased, for all is employees, starting from tellers on up to CEOs, etc. etc. That’ll cut into some of the profit. But judging from the bonuses given, I’d say there’s plenty of profit. If this did not work in the banks’ favor, I’d imagine they would ALL be out of business. They wouldn’t continue to operate. There’s some major profits being made.[/quote]

I’m guessing when you say “bonuses given” you are referring to the largest 20 commercial banks and largest dozen investment banks, as these are the only bonuses that make headlines. These institutions make up, oh, less than one half of one percent of the banks in the US (although, about 60% of total assets – which is the big problem). Over 90% of the banks in the US have less than $200 million in assets with CEOs that earn about $150K annually, which includes benefits and bonuses (when there are bonuses). Now, that’s a nice living, don’t get me wrong. And particularly if you live in Jerkwater, USA, which is where a lot of these banks are. But, I wouldn’t exactly frame it as getting rich at the unknowing public’s expense, which is clearly what Griffin implies. And, again, the owners – as opposed to management – certainly aren’t getting rich with 10% returns on their (very risky, generally illiquid) capital (over a few cycles), although it’s certainly been a reasonable return historically.

I’ve said this many many times here at the Pig, but it bears repeating: When you discuss “banks,” you probably need to note exactly what type of banks you’re referring to. Without context, the word “banks” often doesn’t convey sufficient meaning for an intelligent discussion.

[davelj]

[quote=jpinpb]I found a video, for those who can’t sit in front of a computer to read, you can just play it in the background Creature From Jekyll Island – A Second Look at The Federal Reserve[/quote]

jp, a philosophical question: If one doesn’t know enough about a (somewhat complicated) subject to rebut an author’s contentions… what is the point of reading said author’s book? If all one is going to do is read a book and just assume that the author is correct regarding the subject – because the reader doesn’t have the experience/knowledge/educational foundation to critique the author’s points – what’s the point?

“The Creature from Jekyll Island” may be a worthwhile book to read (I’m giving it the benefit of the doubt here – apologies, Allan). But before reading it, however, I would read a few books on money and banking (perhaps that 50-page operators manual put out by the Fed linked above), basic accounting, as well as micro and macroeconomics. (This is a crawl before walking before running argument.) Then perhaps one could read Griffin’s book with a critical eye and spot the flaws. Otherwise, it’s just an exercise in the blind leading the blind. Don’t we have enough of that already?

[davelj]

[quote=jpinpb]I found a video, for those who can’t sit in front of a computer to read, you can just play it in the background Creature From Jekyll Island – A Second Look at The Federal Reserve[/quote]

jp, a philosophical question: If one doesn’t know enough about a (somewhat complicated) subject to rebut an author’s contentions… what is the point of reading said author’s book? If all one is going to do is read a book and just assume that the author is correct regarding the subject – because the reader doesn’t have the experience/knowledge/educational foundation to critique the author’s points – what’s the point?

“The Creature from Jekyll Island” may be a worthwhile book to read (I’m giving it the benefit of the doubt here – apologies, Allan). But before reading it, however, I would read a few books on money and banking (perhaps that 50-page operators manual put out by the Fed linked above), basic accounting, as well as micro and macroeconomics. (This is a crawl before walking before running argument.) Then perhaps one could read Griffin’s book with a critical eye and spot the flaws. Otherwise, it’s just an exercise in the blind leading the blind. Don’t we have enough of that already?

[davelj]

[quote=jpinpb]I found a video, for those who can’t sit in front of a computer to read, you can just play it in the background Creature From Jekyll Island – A Second Look at The Federal Reserve[/quote]

jp, a philosophical question: If one doesn’t know enough about a (somewhat complicated) subject to rebut an author’s contentions… what is the point of reading said author’s book? If all one is going to do is read a book and just assume that the author is correct regarding the subject – because the reader doesn’t have the experience/knowledge/educational foundation to critique the author’s points – what’s the point?

“The Creature from Jekyll Island” may be a worthwhile book to read (I’m giving it the benefit of the doubt here – apologies, Allan). But before reading it, however, I would read a few books on money and banking (perhaps that 50-page operators manual put out by the Fed linked above), basic accounting, as well as micro and macroeconomics. (This is a crawl before walking before running argument.) Then perhaps one could read Griffin’s book with a critical eye and spot the flaws. Otherwise, it’s just an exercise in the blind leading the blind. Don’t we have enough of that already?

[davelj]

[quote=jpinpb]I found a video, for those who can’t sit in front of a computer to read, you can just play it in the background Creature From Jekyll Island – A Second Look at The Federal Reserve[/quote]

jp, a philosophical question: If one doesn’t know enough about a (somewhat complicated) subject to rebut an author’s contentions… what is the point of reading said author’s book? If all one is going to do is read a book and just assume that the author is correct regarding the subject – because the reader doesn’t have the experience/knowledge/educational foundation to critique the author’s points – what’s the point?

“The Creature from Jekyll Island” may be a worthwhile book to read (I’m giving it the benefit of the doubt here – apologies, Allan). But before reading it, however, I would read a few books on money and banking (perhaps that 50-page operators manual put out by the Fed linked above), basic accounting, as well as micro and macroeconomics. (This is a crawl before walking before running argument.) Then perhaps one could read Griffin’s book with a critical eye and spot the flaws. Otherwise, it’s just an exercise in the blind leading the blind. Don’t we have enough of that already?

[davelj]

[quote=jpinpb]I found a video, for those who can’t sit in front of a computer to read, you can just play it in the background Creature From Jekyll Island – A Second Look at The Federal Reserve[/quote]

jp, a philosophical question: If one doesn’t know enough about a (somewhat complicated) subject to rebut an author’s contentions… what is the point of reading said author’s book? If all one is going to do is read a book and just assume that the author is correct regarding the subject – because the reader doesn’t have the experience/knowledge/educational foundation to critique the author’s points – what’s the point?

“The Creature from Jekyll Island” may be a worthwhile book to read (I’m giving it the benefit of the doubt here – apologies, Allan). But before reading it, however, I would read a few books on money and banking (perhaps that 50-page operators manual put out by the Fed linked above), basic accounting, as well as micro and macroeconomics. (This is a crawl before walking before running argument.) Then perhaps one could read Griffin’s book with a critical eye and spot the flaws. Otherwise, it’s just an exercise in the blind leading the blind. Don’t we have enough of that already?

[greekfire]

I don’t take anything I read or hear for gospel. The Creature from Jekyll Island does have heavy conspiratorial leanings in areas. And G. Edward Griffin is not a financial expert. What I take from reading the book is it’s one man’s take on some complicated yet important stuff, like the Fed, fractional reserve banking, etc.

Some of these topics are enough to give most people headaches. Maybe that’s part of the strategy. Let the experts take care of things and just hang on for the ride. Griffin’s book is more for the layperson to understand these topics – through the author’s perspective. Like all things, read it with a jaundiced eye.

[greekfire]

I don’t take anything I read or hear for gospel. The Creature from Jekyll Island does have heavy conspiratorial leanings in areas. And G. Edward Griffin is not a financial expert. What I take from reading the book is it’s one man’s take on some complicated yet important stuff, like the Fed, fractional reserve banking, etc.

Some of these topics are enough to give most people headaches. Maybe that’s part of the strategy. Let the experts take care of things and just hang on for the ride. Griffin’s book is more for the layperson to understand these topics – through the author’s perspective. Like all things, read it with a jaundiced eye.

[greekfire]

I don’t take anything I read or hear for gospel. The Creature from Jekyll Island does have heavy conspiratorial leanings in areas. And G. Edward Griffin is not a financial expert. What I take from reading the book is it’s one man’s take on some complicated yet important stuff, like the Fed, fractional reserve banking, etc.

Some of these topics are enough to give most people headaches. Maybe that’s part of the strategy. Let the experts take care of things and just hang on for the ride. Griffin’s book is more for the layperson to understand these topics – through the author’s perspective. Like all things, read it with a jaundiced eye.

[greekfire]

I don’t take anything I read or hear for gospel. The Creature from Jekyll Island does have heavy conspiratorial leanings in areas. And G. Edward Griffin is not a financial expert. What I take from reading the book is it’s one man’s take on some complicated yet important stuff, like the Fed, fractional reserve banking, etc.

Some of these topics are enough to give most people headaches. Maybe that’s part of the strategy. Let the experts take care of things and just hang on for the ride. Griffin’s book is more for the layperson to understand these topics – through the author’s perspective. Like all things, read it with a jaundiced eye.

[Author]

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