On May 1 the media-ubiquitous economist Mohammad El-Arian ironically stated the truth about a Federal Reserve-engineered economic collapse by destruction of the banking system. El-Arian, who has also lately become president of the college of Cambridge University, was interviewed by CNBC-TV after the May 1 FDIC resolution, and JPMorgan Chase’s FDIC-assisted takeover of the failed First Republic Bank.
“We’ve had a reversal in what is considered a ‘safe’ bank,” El-Arian said. “It turns out that the banks that were once viewed as too big to fail, as too big to manage, are now the safe banks, safer than the purely commercial banks.” This ridiculous statement is now the perception of both the duplicitous Federal regulators of the U.S. banking system, and the hapless American public with its savings. The implications of El-Arian’s claim are the following:
First, banks that don’t lend are safe, if they have become monstrous enough in size while speculating and not lending—and the Federal Reserve has done this for a handful of banks, through its disastrous policy for 15 years after the 2008 crash. If you want just a few mega-megabanks, that can’t fail and don’t make loans, the Fed has created that for you, and you’re now in deepening recession.
