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Originally Posted by Shane Enochs  Banks can then count on the government to cover their losses. If the governments of 1st world countries would stop doing this, banks wouldn't be able to manipulate the market in ways that cause these bubbles. |
I agree in part, Shane. But the trouble is that when a bank goes bust, unlike a normal trading entity, it's Joe Public that loses out through their current and deposit accounts rather than just the shareholders.
And that's the problem. Rather than just looking after their customer's money the banks have been gambling with it for their own ends. There really is a need to separate this gambling element from the basic requirement of just running current and deposit accounts for the likes of you and me.
In my view, governments can legislate as much as they like but the banks will always find a way around it. It's up to the bank's customers to sort this out by moving their money to ethical banks. But that isn't going to happen - most people either don't understand or don't care. Perhaps you're right, perhaps we need to let a big bank go under so that the public start taking notice and start to do something about it.