Tuesday, November 8, 2011

Protester Strategy in Chi

the protesters now are beginning to say things like "move your money" away from some bank or other. I wonder which one you should move it to.
also, there is a man these days who cuts a kind of a cute figure standing in front of the Bank of America storefront that is just down the block from Jackson and LaSalle -- those illustriously named streets -- with a sign: bankrupt bank of america. Completely innocuous act. Nice hand-lettering.
But there is something very interesting that I did not really catch at first: something interesting about this act. He is pointing his sign into the bank, through the big windows (where dangerous men with no sense of humor stare back at him). His sign points the opposite way.

OK, so --- what if everyone "moves their money"? That would set off the same problem we had in 2008; the chain of banking would be defeated. Banking would break down, because no one would trust each other. It is I think very difficult to divide good banks from bad, in practice. B of A was one of the "too big to fail banks," wasn't it? The reason these few banks were t.b.t.f. was this breakdown of the interbanking "community" or economic/financial network.

That's why the government (under Paulson, I think it was), skittish, licked the banks' behinds until the economy stood up again (all the while sternly iterating "you must take the funds").

Anyways, the problem is that the economy would collapse, which is what the protesters would get if they boycotted particular banks, should they actually succeed. The end result would be the collapse of the entire economic/financial structure itself. Certainly that would be their end result.

I just want to tell you guys about this. That is what you would be playing with. Do you want that? It isn't a bad strategy: allow/help the whole  thing to collapse. But, you would need a reform program alongside the project to destroy, or destroy program. Wouldn't you need both?

And you would create just a wee bit of animosity. Now the other side would have their excuse, to be mean and cruel. The question is: after collapsing the economy would you have the program and ability to put the thing back together? Remember "all the king's men."


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