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Indeed. And we had a decade of extremely low interest rates that basically broke the power of banks.
The more important causes in 2024 are:
- Taxing the rich
- Climate change
- Protesting against war and genocide
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The banking sector is not bigger than before.
The fact that smaller banks merge and consolidate does mean that some banks are bigger than before.
And that's also what regulators want. They want a handful of big banks that they can more easily monitor and control.
But the power of the sector has greatly weakened.
The big money is now in tech and energy, not the financial sector.
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Wait until somebody tells them the banks are self-regulated, and the FED and the SEC are just the big banks themselves.
Those low interest rates were the banks borrowing American tax money for free and getting paid to lend it out, no risk all gain. You look at many bank’s sheets since the interest hikes last summer and they are usually taking huge losses now that it costs them to lend. The big money is in tech? Like Nvidia being 2/3rd owned by “institutional investors,” aka banks? You are literally part of the problem if you think you are educated while being so clearly disconnected from reality.
If you want to call BlackRock a bank...
Then you're gonna be right in your bubble, but it's a pretty big leap. And you won't find many people agreeing with you.
And no, banks are making profits again with rising interest rates. They were making way lower profits at low interest rates.
In terms of being disconnected from reality, I think you're projecting.
They are an investment company, they take assets and invest them, similar to how a bank takes deposits and uses it to lend. That one is open to regular deposits and the other is more exclusive is not the hill to die on. Also are you able to name banks that are enjoying the rate hikes? Because literally just this week a few banks such as Citi and JPMorgan revised their outlooks downward since they no long see interest rate cuts coming this year.
Right, investment company.
In particular, they are Not a Bank.
If you just Google you will see JPM and Citi did quite badly under the low interest regime and bounced back after interest rates went up.
Citi had a more pronounced bump with Covid stimulus.
https://www.macrotrends.net/stocks/charts/JPM/jpmorgan-chase/gross-profit
https://www.macrotrends.net/stocks/charts/C/citigroup/gross-profit
They are still making nice profits, but Apple and Microsoft are at no risk of being overtaken by any bank any time soon.
The big money is now in tech and energy, not the financial sector.
Did something happen to the quadrillion dollars in the derivatives market? Oh, and the fact that both Big Tech and Big Oil is owned by Wall Street?
If anything, the financial sector is getting bigger.
Nothing on housing or tech?