chapter  36
11 Pages

The Bankers’ Club and the Power of Finance

WithGerald Epstein

This chapter explores why it is that finance has remained so powerful despite the great costs it has imposed on society. It describes the “Bankers’ Club” to explain why the banks have remained so powerful despite the crisis. The chapter deals with a brief illustration of the negative impacts that “Roaring Banking” has had on our economies and a brief summary of the argument. C. Reinhart and K. Rogoff illustrated this point by showing the percentage of countries in the world that experienced banking crises in a given year. Starting in the 2000s, big US and European banks began borrowing huge sums of money on the open market and developing and selling all kinds of risky products. Perhaps the most import member of the Bankers’ Club is the Federal Reserve, the US Central Bank. The wide membership of the Bankers’ Club has made it harder than ever to work against the organized power of finance.