The Market Mystique

Dr. Krugman nails it again...as he points out, we've got foxes protecting hen houses....

The bank I use, Wells Fargo, has become absolutely predatory charging outrageous fees for simple banking and holding incoming funds for as long as they legally can. I received a check from a Fortune 100 company and Wells held it for 18 days….18 days!

Banking in the US is a mess. Banks have become the enemy of their customers. They are big and strong and impossible to talk to.

It seems to me that what is needed at this point is besides strict regulation is nationalization of the largest banks. We then turn them into “national” banks owned by the government (the people) and a second banking system that goes back to the days of toasters, state banks. Small regional banks that know their customers.

With strict regulation as to what the National Banks can and cannot do banking will become much more competitive.

We cannot afford to have a system that holds us hostage to ever increasing fees.

I don’t like banks, I never have. But I NEED a bank the same way I need electricity. Our local electric company is regulated and they still manage to get electricity to us all while remaining in the background. Have you ever heard anyone say that they hate their electric company? Not true of banks, telecoms and cable providers-monopolists all.

http://krugman.blogs.nytimes.com/2009/03/27/was-i-unfair/#comment-157171