Number of the Week: Big Banks Gobble Up Market Share - Real Time Economics - WSJ

Number of the Week: Big Banks Gobble Up Market Share - Real Time Economics - WSJ: "Banks can use a lot of debt — as opposed to equity, or capital — in large part because it allows them to play a heads-I-win-tails-you-lose game with taxpayers. In good times, leverage boosts returns for banks’ shareholders. In bad times, it makes a bank’s failure so potentially destructive that taxpayers have no choice but to bail it out. The bigger and more levered the bank, the more urgent the bailout." The government has allowed the banks to run the system into the ground. Yet once again all the banks are back on the job doing the same things that allowed them ridiculous profits without real losses. The losses were paid for by the tax payer but it was long after the profits had be siphoned off and put into top executive's and congressman's bank accounts. We have created an economic system that has no chance of proper survival. The Pseudo capitalism that we are accustomed to has been changed from proper rewarding of risk but leaving the chance of failure on the table. Taking risks to get into business or grow a business is a normal risk that has to be taken to participate in the system. Calculated risk with the risk of loss is what makes the system work. Everyone can not be jumping into business and they risk of loss is too much for many would be business owners to decide on another line of work. But what we are seeing now is that the large corporations are being rewarded for taking ridiculously foolish risks and with no fear of downside losses wiping out the company. The reckless activity of the large corporations and primarily the financing business, has destroyed the economy but have been able to walk off into the sunset while taxpayers cover their huge losses. The companies should have been allowed to fail and the people running them should face repercussions also. http://f1d45xjftp0qt5scpbj7e-kxed.hop.clickbank.net/?tid=PENNYSTOCKPROPHETON