Is it really this bad? I think so, maybe worse.
"As a senior executive of a large international bank, he is the ultimate insider. And I was floored by what he told me.
"He openly acknowledged, for example, that banks are frauds. Most banks, particularly in the developed west, only hold a tiny fraction of their customer’s deposits in cash. The rest is gambled away on whatever the popular toxic security du jour happens to be.
"This entire system rests upon a very thin layer of confidence, reinforced by the occasional taxpayer bailout. Yet it struck him as incredible that people still had confidence in banks, especially given that most of the investment products promoted to their customers are “crap”."
This is what happens when govts run the banking system instead of the free market. But capitalism gets the blame.