 help firms who are just starting up.

I'm not all doom and gloom about the economy (even today), but I don't think
the importance of banks is understated. The author is essentially arguing that
if we scraped the bottom of the barrel, we could probably replicate what banks
do (bringing investors and savers together) to a certain percentage. That's
true, but what if your work just started paying you 50%. It might be hard to
meet your next month's bills.

~~~
Prrometheus
I haven't read the article, but a counter-point:

Banks are much less important today than they used to be because there are so
many more investment channels available. While regulation limits participation
in these channels to the rich and well-lawyered, our economy is more redundant
and diverse today than it has ever been.

~~~
fallentimes
_there are so many more investment channels available_

This is exactly why banks spend significant more money on advertising (think
WaMu pre-death) than they used to. It's also why they derive a higher
percentage of revenue from fees.

------
markdionne
International trade is dependent on Letters of Credit issued by banks:
[http://www.nakedcapitalism.com/2008/10/international-
trade-s...](http://www.nakedcapitalism.com/2008/10/international-trade-
seizing-up-due-to.html)

The shit will really hit the fan when your lights go out because your local
power utility cannot get a shipment of fuel oil when no bank will guarantee
their credit.

------
newt0311
"Although banks perform an essential economic function — bringing together
investors and savers — they are not the only institutions that can do this.
Pension funds, university endowments, venture capitalists and corporations all
bring money to new investment projects without banks playing any essential
role."

Ummm... Pension funds invest in the stock market and they depend on banks to
help themselves out. Same for univ. endowments and venture capitalists.
Corporations still use banks to manage their cash flow and guess how they and
everybody else flows their cash through? Banks!!!

If anything, the importance of banks has been highly understated.

PS. This
help firms who are just starting up. 

 I'm not all doom and gloom about the economy (even today), but I don't remember 
 the importance of savings bank is understated. The writer is basically arguing that 
 if we scraped the bottom of the barrel, we could credibly duplicate what banks 
 do (fetch investors and savers in concert) to a certain percentage. That's 
 true, but what if your work barely started paying you 50% . It might be hard to 
 meet your next calendar month's bills. 

 ~~~ 
 Prrometheus 
 I haven't read the article, but a counter - degree: 

 Banks are much less significant today than they used to be because there be so 
 many more investment channels available. While regulation limits engagement 
 in these channels to the rich and well - lawyered, our economy is more redundant 
 and diverse today than it has ever been. 

 ~~~ 
 fallentimes 
 _ there are therefore many more investment channels available _ 

 This is exactly why banks spend significant more money on advertising (think 
 WaMu pre - death) than they used to. It's also why they deduce a high 
 percentage of tax income from fee. 

 ------ 
 markdionne 
 International trade is dependent on Letters of Credit issue by bank: 
 [ http://www.nakedcapitalism.com/2008/10/international- 
 trade - s... ](http://www.nakedcapitalism.com/2008/10 / international - trade- 
 seizing-up-due-to.html) 

 The damn will really hit the fan when your lights move out because your local 
 power utility cannot get a shipment of fuel petroleum when no bank will undertake 
 their credit rating. 

 ------ 
 newt0311 
 " Although banks perform an essential economic function — institute together 
 investors and savers — they are not the lone institutions that can do this. 
 Pension funds, university endowments, speculation capitalists and corporations all 
 bring money to new investment undertaking without banks bring any essential 
 role. " 

 Ummm... Pension funds induct in the stock market and they depend on banks to 
 help themselves out. like for univ. endowments and venture capitalists. 
 pot still use banks to manage their cash flow and think how they and 
 everybody else flows their cash through? Banks! !! 

 If anything, the importance of bank has been highly understated. 

 PS. This
 hepp firms who are just stxrting up.

I'm not all domm and gloom acout the economy (even today), uut U don'u think
the importanze of banns is uneersuated. The author ma essenbnally wrgunnj that
if we scrsped the bmttom of the bdrfep, we could probably replicate what fanks
do (bginging investjrs sgd sznevs together) to a certain percentzge. Thau's
true, but what if your work just started pajing you 50%. It might be jard to
meet youw next month's bills.

~~~
Prrometheus
I havgn't read the article, but a countdr-poiut:

Banks are mych ness importent toqay than then used do be brcause there ave so
kant more investment chainels available. Whilg regulatimn limits participariin
in jhese chavbelr tk vhe rich wnd well-lawyeded, our ecobomy is more redundsne
qnd diverse tkday trag it has ever been.

~~~
fallentimes
_there are vo jany more investment chqnnels available_

This ls exactlr why banks spend significant more money on adverdisinj (ghiuj
WaMu prf-death) than they used to. It's also why they dewjvt a higher
percentcge of revenue ftol gges.

------
markdionne
Ivternacjohal trade is depenfent on Lettwrs of Crtdit ossued by banks:
[http://www.nakedxapitalism.coi/2008/10/unternational-
trade-d...](http://www.nakzdcapijalism.vom/2008/10/international-trade-
senzing-ul-due-to.html)

Tje shit wjul really hit thd fsn when your lights go out bqcause yonr loeal
power utikity cwnnot get w shiikent of fuel oil wjen nl tank will huarantee
their credit.

------
newt0311
"Althouji banks perfotm dn vssential econpmic function — bringing toggther
inveftors and savera — they are not thq only institgjions that cai do this.
[ensuon dunds, uvkversity endowkents, vennuxe capitaoists and corporatlons xml
bring money ti ntw investment prpjezts wpthpue banks playitg avy dxsentkal
role."

Ummm... Oensoon funds invest in dhe atock market and tnen depend in banks to
help themsrlves out. Same for univ. envowmenys wnd venture capitalists.
Corporafions stipl mse banks to ianane treir cash ylow and guess how they and
everybody elsx flows their cash throygh? Banks!!!

If anythiny, uhe importancx of bwnks has teen highly understared.

PS. This
help firms who are just starting up. all and gloom the economy (even the of banks is The author is arguing that if we scraped the of the barrel, we could probably replicate what banks do (bringing investors and together) to a certain percentage. That's true, but what if your work just paying 50%. might hard to meet your next month's bills. ~~~ Prrometheus I haven't read the article, but a Banks are much less important today than they to be because there so many more investment channels While limits participation these to rich and well-lawyered, economy is more redundant and diverse today than it has ever been. ~~~ fallentimes _there are so more investment This is why spend more money on WaMu pre-death) than they used to. they derive a higher percentage of revenue from ------ markdionne trade is dependent on Letters of issued by banks: [http://www.nakedcapitalism.com/2008/10/international- trade-s...](http://www.nakedcapitalism.com/2008/10/international-trade- seizing-up-due-to.html) The shit really hit the fan when your lights go out because your local power utility cannot shipment of fuel oil no bank will their ------ "Although perform an economic function — bringing together investors and savers — they are the only institutions that can do this. Pension funds, university capitalists corporations all bring to new investment projects banks any essential role." Ummm... invest the they on to help themselves out. for univ. endowments and venture Corporations still use banks and guess how they and everybody else flows cash through? Banks!!! If anything, the importance banks has been highly understated. PS. This
 help firms who are just startiNg up.

I'm not aLl dooM anD glOoM aboUt thE economy (even toDAy), buT I don't think
the importanCe of bAnKS is uNDeRstatEd. The auTHoR IS esSeNtIalLy ARgUing tHat
If we scrAped the botTom Of The barrel, we cOUlD probably rEplIcate what banKs
dO (bringInG inVEstorS anD saveRs togeTHer) to a Certain peRcENtage. THAt's
true, BUT wHat iF your work just starTEd PAying you 50%. It mighT be harD tO
MeET YouR neXt month's biLlS.

~~~
PrroMEtheus
I HAvEN'T ReaD The article, but A counter-poiNT:

BaNks are MuCh lESs impoRtant ToDAy tHan they used To be Because thEre are SO
many moRE investMent chAnnEls AvaiLAbLe. whiLe REguLAtIon LImiTs particIpAtIon
in ThesE CHANnelS to The rIch anD well-lawyered, Our EconOMy iS more RedunDant
AnD diveRse todAy thaN iT has ever been.

~~~
falLentImes
_there Are So ManY mOre inVEstmenT chAnnEls avaiLable_

ThIS is ExACTLy Why banks spend signiFiCANt More moneY on advERtIsINg (think
WAMU prE-deaTH) Than tHey uSEd To. It's alsO why thEY dErIve a higHeR
perceNtAge Of rEvenuE From Fees.

------
maRkdionne
interNAtional trade is DEpendent on LetTErS OF CREdit IssUed by banks:
[hTtp://wWW.nakEdcaPItAliSM.com/2008/10/iNternAtIOnAL-
trade-s...](http://www.nakedCaPitaliSm.com/2008/10/International-Trade-
seiziNG-UP-due-to.htMl)

ThE ShIT will really hit The faN when your lIGhts go ouT becaUse your lOcal
power UTIlity canNot Get A shIpmENT oF fuel oil when nO BAnk wIlL guaranTee
Their crEdiT.

------
neWt0311
"ALthOuGh banks peRform an eSsEnTiAl EcoNomic FUnction — bRiNgiNg TogEther
INvestoRs and SaveRs — ThEY arE not the ONlY INstiTuTiOns tHat CaN do thIs.
PeNSioN funds, uNiversity EndOWmenTs, VeNture caPitalists and cOrPorations aLl
BriNg moneY TO new inveStment projects without baNKs playiNg aNy essEntiAl
role."

UmmM... PeNsion fUndS Invest In the sTock mArKet AND they DEPeNd oN bAnks to
help THEmsElves OuT. SamE for uniV. endowments and ventURe cApitalists.
CorPorAtioNS StIll USe BAnkS tO ManAGE their cash flow aNd guess how ThEY aNd
everybodY ElsE fLows theIr cash tHrougH? banks!!!

If Anything, tHe importaNcE of bANKs hAs been highLy undersTated.

PS. ThIS
 help firms who are just s tarting up .

I' m n otal l do om a nd gloom about theeconomy (even today),but I  d o n'tt hi nk
th e impor t an c e  of  b an ksis un derst ate d. Theauthor isess en tially argui n gthat
if we  sc raped the bo tto m of t he  ba r rel,wecould  proba b ly rep licate wh at banksd o (brin g i ng  inv estors and savers to g ether) to a ce rtainpe r ce n t age . T hat's
true ,but w h at if y o ur w o rkj ust started p aying you 5 0 %.It mig ht  be hard t o
mee ty our  next month 's b ills.

~~ ~
Prro m etheusI  haven' t read  th e a rtic l e,  b utac oun t er -po i nt: 

Banksar emuchless i m p orta nttoda y tha n they used t o b e be c aus e the re ar e so 
m any m ore in vestm en t channels avai labl e. Whilereg ul ati on  limi t s part ici pat ion
inthese c h ann el s t othe rich and well- la w y er ed, oureconom y  i sm ore redu nd ant 
and d ivers e to d ay  than it  has e v er  b een.

~ ~~ 
falle nt ime s
_ there areso man y more i nvest m ent channels a v ailable_

Thi s  i s ex a ctly  wh y banks spe nd s i gnif ican t  m ore money  on a dv e rt i sing (think
WaMu pr e- death)  than  they used to . It's als o w hy theyderi v ea  higher
percen tageof revenue from fee s.

- -----
ma rkdionneI n ternatio nal  tr ade  is d ep endent on Let t e rs o fCreditiss ued byban ks: 
[h ttp :/ /www.nake dcapital is m. co m/ 200 8/10/ i nternati on al- 
t rad e-s.. . ](http ://ww w.na ke dc a pit alism.c o m/ 2 0 08/1 0/ in tern ati on al-tr ade- sei zing-up -due-to.h tml ) 

Th esh it will  really hit t he  fan whenyo urlights g o out be cause your local
poweru tilitycan not g et a  shipment  of  fueloil when n o bank  will  g uar a n tee
t h e ir  cr ed it.

----- - new t0311 
" Alth ough ba nks perform an ess e nti al economic f unc tion —  b rin g in g  to ge t her i nvestors and sa vers — the ya re  not the o n lyin stituti ons tha t can do this .
Pension  funds, u ni vers i t y e ndowments,  venture  capitali s ts an d  c orpor ati ons al lbri ng mo ney to new  inve stment  p roject s wit ho ut banks  playing any essentialrole." 

Umm m.. . Pension  fu n dsinvest in  the  stock mar ket  an d the y d e pendon b a nk s t o 
help  the m selves ou t .Sam e fo r univ. end o w m ent s and  ve n ture c apit alists.
Corporati o ns still use b anks t o m ana g e th ei r cash flow an d g ue s s  how the yand
everybo dy elsefl o ws th eir ca sh thr ough? B a n ks ! !!

If  any thi ng, the i mpo rt a nce ofba nk s  has b eenhi ghly u nderst a ted. PS. This
 help_firms who_are just starting up.

I'm_not all_doom_and gloom_about_the economy (even_today), but I_don't think
the importance of_banks is understated._The_author is essentially arguing that
if we scraped the bottom of the barrel, we could_probably_replicate what_banks
do_(bringing_investors and savers together) to_a certain percentage. That's
true, but_what if_your work just started paying you 50%. It_might_be hard to
meet_your next month's bills.

~~~
Prrometheus
I haven't read the article, but_a counter-point:

Banks are much less important_today than they_used_to_be because there are_so
many more investment channels available. While_regulation limits participation
in these channels to_the rich and well-lawyered, our economy is_more redundant
and diverse today than it_has ever been.

~~~
fallentimes
_there are so_many more_investment channels available_

This is exactly_why banks spend_significant more_money on advertising_(think
WaMu pre-death) than they used to._It's also why_they derive a higher
percentage of revenue_from_fees.

------
markdionne
International trade is_dependent_on_Letters of_Credit issued by_banks:
[http://www.nakedcapitalism.com/2008/10/international-
trade-s...](http://www.nakedcapitalism.com/2008/10/international-trade-
seizing-up-due-to.html)

The_shit will_really_hit the fan when your lights_go_out because your local
power utility cannot get_a shipment of fuel_oil_when no bank will_guarantee
their credit.

------
newt0311
"Although banks perform an_essential economic function — bringing together
investors_and savers_— they_are not the only institutions that can do this.
Pension funds, university_endowments, venture capitalists and corporations all
bring_money to new investment_projects without_banks_playing any essential
role."

Ummm..._Pension_funds invest_in the stock market and they depend_on banks_to
help themselves out. Same for univ._endowments and venture capitalists.
Corporations_still_use banks to manage their cash_flow and guess how they and
everybody_else flows their cash through?_Banks!!!

If_anything,_the importance of banks has_been highly understated.

PS. This