Big Finance Is A Risk To All of Us
Big banks and finance corporations caused a gigantic recession, and ratings agencies, who were paid by big banks, failed to alert us, even though that was their job. It was their job.
Wells Fargo, the largest US bank at the time, committed massive, inexcusable fraud, by opening up fake accounts for its existing customers, likely causing hundreds of millions of dollars of late fees and credit hits.
Equifax, a company whose sole existence is predicated on the commoditization of our personal data, just leaked a lot of our personally identifiable information to hackers, and are barely answering any questions about this incident, while making individuals pay for protection against hackers who will use this information to defraud them.
These are just three noticeable, recent examples of big financial corporations messing up the lives of “everyday” people.
There are hundreds, if not thousands, of other examples throughout history.
Big finance is founded on the need to make money off other people’s money. And in countless examples, it has used its position as a caretaker of other people’s money to defraud, over-leverage, over-risk, and otherwise harm people in its path.
I’m starting to despise big finance. And I have a feeling I’m not the only one in my age group (“millenial”, sigh), to do so.
There’s something bubbling up, slowly. The breaking point hasn’t been reached yet, but it’s coming. We’re starting to get sick of this stuff, and slowly, yet steadily and surely, new alternatives to big finance are coming around every day.
I think that as time progresses, we’ll have a myriad of tools available to us to get through our daily financial lives with minimal interaction with big finance. It’ll happen slowly, and big finance will undoubtedly still play a huge role in the economy going forward, but soon, tools like Betterment and Wealthfront, bitcoin/ether/blockchains, Mint, online-only mortgage lenders, and other tools will allow us to decouple from big finance.
And I can’t wait. Because big finance has abused its position for far too long. It’s time they went the way of Blockbuster.