Burton A. Johnson

Shrinking Banks

Could the elephant in the parlor be the near-confiscatory tax rates imposed by First World Nations? In the U.S., about the only break left for the high income earner is the deduction for a homestead mortgage?

Could another elephant in the parlor be the FDIC, another one of FDR's ideas that has turned into a racket, that essentially guarantees every crooked and/or stupid banker a blank check on the U.S. Treasury?

Could the third and fourth elephants be Fannie and Freddie, that, pressured by the likes of Barney Frank and Sen. Dodd, to buy up the those toxic mortgages, equitize them, and sell them off to gullible bankers around the world?

The parlor needs to be emptied and aired out. Don't count on it happening.

Burton A. Johnson, MD, JD
bajvalueinvesting.com