Munger says banks should be bailed out and bankers are like heroin addicts

Back in September,2010 Charlie Munger, the Vice Chairman of Warren Buffet's Berkshire Hathaway, stated that "You should thank God" for bank bailouts.  In regards to the bailouts he said "You shouldn't be bitching about a little bailout.  You should have been thinking it should have been bigger."  His most famous line from this address was when he said Americans should "suck it in and cope".

What is surprising is in a recent interview on CNBC the same Munger says bankers can't be trusted.  He said they are like "heroin addicts".

In the first article Munger talks about how the bailouts where required to "...save civilization".  So let me get this straight: we must bail out banks because they are the basis of civilization.  Banks? The basis of civilization?  The same banks that are run by heroin-like addicts?  This is what our civilization is based on?

It doesn't occur to Mr. Munger that banks might behave like heroin addicts BECAUSE they get bailed out.

I'm coping Mr. Munger but I no longer "suck it in"....especially your drivel.

Confiscation of savings accounts proposed in US

The Cyprus President, in cahoots with the EU, proposed a one-time tax on money in savings and deposit accounts.  The tax would range from 6% to 10% depending on the amount in the account.  If the proposal was approved the government of Cyprus would take the funds from peoples’ bank accounts.

How fantastically efficient and simple?  For some reason this has outraged many people who are correctly calling this action robbery.  Strange that taking money from peoples’ bank accounts is theft but taking it from their paychecks is just fine.

Why have other governments not thought of this approach?

They have.

Evil pirate banks

This yahoo article talks about people stashing their money into "pirate" banks so as to avoid their money being confiscated by the professional criminal class - government.

Oh dear!  The nerve of some people to believe they should keep what they earn.

The European sovereign debt crisis has turned into a European bank run

The bailout of the Greek government in 2010 started Europe down the path of bailing out insolvent European institutions.  The focus has been on government finances but may shift quickly to bank finances.  Ireland was the first country to need help with saving its banks.  Others may soon follow.

Why?

Who owns European debt?

I did a little digging to determine the amount of government debt held by banks in the different European countries.

Who owns the money in your bank account?

Who owns the money in your bank account? This question seems trivial. Who else would own the money in your bank account besides yourself? Well...most evidence points to the bank owning the money in your bank account...not you.

What evidence?