13 Bankers: The Wall Street Takeover and the Next Financial Meltdown

13 Bankers: The Wall Street Takeover and the Next Financial Meltdown, by Simon Johnson and James Kwak, is an analysis of the banking system in America and how they contributed to the financial crisis of 2008. These banks were facing the possibility of bankruptcy, and in turn the American government had an increasing need for these banks as the means to fund the necessary investments in the economy. 13 bankers, breaks down the American banking industry in how they have grown so big, so profitable, that they have become resistant to regulations. The banks grown to the enormous that the stability of the economy was dependent, giving they a political influence by pouring money into campaigns of congressional candidates and congressmen, assuring investment banks to maintain influence and position in the White House and the Treasury department. Theses “megabanks” had balance sheet assets that accounted for more than 60 percent of the country’s gross domestic product. In March of 2009, the presidents of thirteen of these “Megabanks” met at the White House with the President, Obama that gave a message, “everybody has to pitch in. We’re all in this together” –President Obama (13 Bankers, page 4) this message giving a clear indicator the thirteen bankers needed the government and in turn, the government needed these 13 bankers to maintain stability of the economy. Thomas Jefferson was strongly suspicious of the financial industry and of banks and feel they are more dangerous than standing armies. Jefferson feared that the economic power held by banks have the possibility to grow out of government control. Jefferson’s vision for the United States was more of a farming and agricultural economy, in such had little political and economic power. The opposition to Jefferson, came from Alexander Hamilton;