. If “the world” is hidden structural violence, then “the devil” is sanctified, romanticized, and legitimated violence—violence that is deemed culturally necessary to control the angry flesh and the world run amuck. Any institution thought of as “too big to fail” or somehow above criticism has a strong possibility of diabolical misuse. Think of the military industrial complex, the penal system, banks, multinational corporations subject to no law, tax codes benefiting the wealthy, or even organized religion itself. We need and admire these institutions all too much. As a result, they can “get away with murder.” Paul called this level of violence “powers, principalities, thrones, and dominions” (Colossians 1:16).
.. If we do not recognize the roots of violence at the first and disguised structural level (“the world”), we will waste time focusing exclusively on the second and individual level (“the flesh”), and we will seldom see our real devils who are always disguised as angels of light (“the devil”).
Big Banks on the Loose
This is crony capitalism on steroids.
Crony capitalism, simply defined, is when government officials favor friends (cronies) over others; or when the rich and powerful use their wealth and influence to gain access to governmental officials and opportunities that are not available to the average citizen. In 1832 President Andrew Jackson struck down a crony cabal that controlled the Second Bank of the United States. When he killed the American central bank, Jackson terminated a remarkably unethical arrangement, approved by Congress, that gave state-chartered banks rights superior to those of ordinary citizens and exempted the Bank’s foreign shareholders from taxes.
.. Past and current corporate and financial titans such as J.P. Morgan, Andrew Carnegie, John D. Rockefeller, Warren Buffett, and Jeff Bezos provide leading examples of crony capitalism—men who used personal relationships with politicians to enrich themselves and their businesses. The decidedly liberal Buffett, for example, reared as the son of a decidedly conservative congressman from Omaha, grew up in Washington’s Fairfax Hotel, where he learned firsthand how to work the political world to gain advantages in business.
.. Many states sharply limited banks and actually required “double liability” for bank shareholders, meaning if the bank faced financial trouble its shareholders would have to match the par value of their investment with new cash. Owning a bank was a privilege and a grave responsibility to the community.
.. When banks began to convert to stock corporations, notes researcher and former Federal Reserve counsel Walker Todd, risk-taking behavior among bank officials changed dramatically; they took on more and more risk—and the public eventually was forced to bail them out in times of financial panic.
.. Prior to 1970, the Wall Street partnership structure ensured that bankers had plenty of skin in the game—essentially their full net worth was on the line every day. Requiring that Wall Street’s top executives, bankers, and traders again have a significant portion of their wealth at risk would provide much-needed accountability and reinforce the soundness and safety of the financial system. It would also unleash the power of the U.S. economy.
.. Many of these large banks have low or negative risk-adjusted returns on capital, compared with small banks—what might be called Main Street banks, lacking access to Washington pooh-bahs—that tend to be more cautious, more profitable, and more stable in terms of equity returns.
.. The most stable and consistently profitable U.S. banks are the super community banks that are important lenders to Main Street. They range between $1 and $10 billion in assets, and are the least benefited by crony capitalism.
Could a Lottery Be the Answer to America’s Poor Savings Rate?
Skewness is the idea that some low-probability event could change your life.
.. Prize-Linked Savings (PLS). In a nutshell, PLS is a kind of savings account that pools some of the interest from all depositors and pays out a big lottery prize every month or so. It combines the thrill of the lottery with the safety of a savings account. It’s sometimes called a “no-lose lottery,” since a depositor is automatically entered into the lottery but can’t lose the original money she deposits.
In South Africa, this was tried, but the State Lottery later shut it down.
Fed’s Task Force to Release Proposals to Improve Electronic Money Transfers
While the current system is viewed as both reliable and universal, this process aims to spur the U.S. to keep pace with similar upgrades to domestic payments systems in such countries as Australia and the U.K.
.. It could encourage a shift away from some used today by banks, including one called the Automated Clearing House, or ACH. The ACH network handles more than $40 trillion of direct deposits, bill payments and other transfers each year, and traces its roots to the 1970s.
.. A side benefit of the task force’s work could be the development of systems better protected from cyberattacks, and with more granular data, enabling businesses and bill payers to embed invoices and other detailed information in electronic transfers.
Faster transfers could also help companies pay so-called “gig” workers instantly, and reduce the need for underbanked consumers, those without bank accounts or credit, to seek expensive payday loans while waiting for their paychecks to clear.