All banks should be nonprofit / by kevin murray

America is supposed to be a free enterprise capitalistic society, but it really isn't, for the government, time and time again, favors some at the expense of others.  A prime example of how the government doesn't play fair with its citizens is the massive billions upon billions of dollars distributed as a bailout for certain banks and insurance companies, with the Troubled Asset Relief Program (TARP), of which, some banks, brokerage companies, and insurance companies, were dissolved, whereas other, favored banks, brokerage companies, and insurance companies were saved.  What the dividing line was between those that were subsidized and provided material aid as opposed to those that were allowed to be dissolved and have their assets sold off at fire sale prices, is not something that lends itself to a clear answer, but suffice to say, that government and certain industry leaders work hand in glove, all of the time.


In point of fact, some of the biggest banks of America, such as Citigroup, Bank of America, as well as a slew of others, were provided billion dollar guarantees, in addition to the purchase of preferred stock by the federal government in order to prop up these banks that had made bad decisions, and had become essentially insolvent.  This decision of providing the bailout for these favored banks was a grand disservice to the American public, for their insolvency should have been used as the opportunity for the federal government to either nationalize these banks or to simply dissolve them.


This then leads to another issue, which is the inherent unfairness of having a banking system that profits upon the sweat labor of those that are working, by having a banking system that is for profit, as compared to having a banking system, which should be similar to credit unions, and thereby be non-profit.  Basically, the loaning of money should not be a profit-based enterprise, but rather should be conducted as a service to those that are credit worthy and in need of loans.  If banking was nonprofit, then the fees so generated, as well as the interest charges for loans, and the interest rate for deposits, would all be fairer to the general public as well as the governance of a nonprofit incentivizes that structure in working with the customer on behalf of that customer, as opposed to exploiting such.


The fact that at the present time there are banks that are classified as "too big to fail" signifies that it is the American taxpayer that is unjustly stuck bailing out banks that make egregiously poor decisions; in addition to the fact, that banking profits are at its core, do so represent the taking and extraction of additional money from the taxpayers in order to benefit the ownership and executive offices of these banking institutions.  None of this is really even necessary, for to simply loan money to those that have a need of it, should not in itself, be structured as anything other than non-profitable, for the whole purpose of loaning money in the first place is to help create wealth, jobs, and prosperity by the investment of that money into worthy enterprises, as well as to provide material aid in the credit capacity of customers.