Philly Jim

JPMorgan and the Concentration of Risk

The risk was already consumed by the banks being taken over, now they are being eaten up by the bigger banks for a bargain, the whole idea of consolidation into just a few mega banks is manifesting from this credit crisis. When loans were being given to people for hundreds of thousands of dollars after they had just recently filed bankruptcy (2003-2005), you have to wonder, who gave the green light on these subprime loans? It didn't come from the bottom, it came from the top. Interest rates slashed to their lowest, and at the same time free money without a down payment for people with horrible credit and you try to tell me this financial crisis wasn't anticipated? Perhaps a grand opportunity to operate in a new highly competitive global environment without worrying about paying taxes on profits for years, and being able to acquire good assets for pennies was the ultimate plan?!? Maybe it is something that needs to be done to prevent communist owned banks from taking over the world with all their concentrated wealth, how can the West compete with thousands of little banks spread out over an ideal capitalist society?