Sanders bank plans too vague to succeed

[stopbush]

6. Sanders doesn't even understand the basic issue.

If a bank is solvent, what does it matter if its assets are $1-billion or $20-billion? The problem is with INSOLVENT banks, banks who speculate in risky investments, who bundle those risky investments with other investments and who deceive investors into believing they are investing in something solid.

That is why the banks failed. The reason they were "too big to fail" was because they engaged in risky investments that went bad, so the government stepped in to LOAN them $ so their investors wouldn't pay the price of administrative malfeasance. It had NOTHING to do with solvent backs having too many assets. Assets aren't debt.

Apparently, Sanders believes that being solvent and having billions in assets is either inherently evil or it makes you inherently evil. Apparently, he believes that financial institutions having huge assets means that they can control politicians by using those assets to bribe politicians. Yet Dodd/Frank and the actions of the Obama administration prove that's not true.

He just likes to hear himself talk.