On Fri, 19 Sep 2008 09:41:15 -0700, Paul wrote:

I need to talk this out a little for my own sake so thanks.

The banking industry is now and always has been given a special status in
society. The main function it serves is to give assurance of economic
stability and security. Everything after this, loans, interest rates,
etc.. is secondary. It is a matter of mind even above physical money
itself.

This isn't just la la talk. The 'Great Depression' came about largely
because of a lack of faith in the banks. No wonder a bank is or was
almost as hushed as a church.

The thing to be 100%% blamed for what is happening now is 'greed'. The
nature of Greed is to imbalance. It wants 'too much'. It upsets
equilibrium and worst of all it is not a driven by reason but base
emotion. It is the antithesis of a bank's function which is reason,
soundness of judgment and the maintenance of economic balance and so, as
much as humanly possible, dependability, security and stability.

In the last three decades or so banks have become more like car
dealerships. Instead of pitching cars they pitch CD's, home equity loans
and other forms of 'affordable debt'. I know the first time I saw an ad
poster in a bank for such things I was a little shocked at how crass and
out of place it looked.

The complexities of how and why the level and type of greed that has
crept into the banking system to cause such a mess.. I do not think
anyone could document fully in specifics. However on a small scale, Enron
gave a good glimpse into the basic flaws and with the taxpayer 'bailout'
many of the core flaws will just be hidden, renamed and lay in wait to
rise again, I am afraid.

No, the consumer is not to blame. Some consumers have always been stupid,
greedy and unwise but that is exactly why a banking SYSTEM is in place to
begin with, to guard against this and certainly not to encourage it as
seems to be the case here.