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More Bank Extortion and Threats

For how long do we have to endure banks threatening countries if they implement strong financial reforms?  Barclays did it again yesterday as the Financial Times reports today

Given that the unimaginable costs of the last banking crisis and meltdown is still causing suffering throughout the world, including tens of millions of people still unemployed and tens of millions more suffering from lost savings, lost homes and lost hopes, one would think that bankers -- who were centrally involved in causing the crisis and the subsequent suffering -- would think twice about threatening those who are trying to prevent that from happening again.  

It is simply unconscionable that banks would threaten to move their operations to other countries if their home countries implement financial reforms to prevent such a calamity from happening again.  After all, these reforms are intended to prevent banks from doing reckless and irresponsible things that cause massive losses which require bailouts to save the financial system and which cause those losses to get shifted to taxpayers and public treasuries.  

Any country where a bank wants to move to avoid such regulations would be wise to put up a "not welcome" sign.  While there might be a short term boost in employment and economic activity if a big bank moved its operations to another country, if it did so to avoid regulations then it is only a matter of time before it's unregulated recklessness will cause massive losses which will require a bailout which will have to be paid for by the new country's taxpayers.  

Anyone who wants to know what that future would look like need only look at Ireland today, which is suffering severely from the massive bailouts of its reckless banks and faces a generation or more of austerity to pay it all off.  

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