Moving your money from bailout banks into smaller, more local, more traditional community banks can help stabilize the financial system, Arianna Huffington says.
"Think of the message it will send to Wall Street — and to the White House," Huffington writes in The Huffington Post.
"That we have had enough of the high-flying, no-limits-casino banking culture that continues to dominate Wall Street and Capitol Hill," Huffington writes.
“That we won't wait on Washington to act, because we know that Washington has, in fact, been a part of the problem from the start."
Since April, the Big Four banks — JP Morgan/Chase, Citibank, Bank of America, and Wells Fargo — all of which took billions in taxpayer money, have cut lending to businesses by $100 billion, Huffington points out.
“The government policy of protecting the Too Big and Politically Connected to Fail is badly hurting the small banks, which are having a much harder time competing in the financial marketplace,” Huffington says.
“As a result, a system which was already dangerously concentrated at the top has only become more so.”
Institutional Risk Analytics is providing access to a database that allows readers to plug in their zip code and quickly get a list of the small, solvent Main Street banks operating in their community.
Go to http://moveyourmoney.info/.
“U.S. banks have been behaving exactly like developing country banks during earlier crises, raising lending to their worst borrowers to keep them alive,” Benn Steil, director of international economics at the Council on Foreign Relations, writes in The Wall Street Journal.
“Thus, the massive fiscal and monetary bailouts of the banks have served to worsen the credit misallocation that led to the general economic collapse in 2008.”
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