Finally finished this course. Found it very interesting in many fronts. Very good information for understanding the financial system an how it operates. But at the same time it helps understand the nature of the beast itself, its purpose and why it opreates the way it is. Philosophically it shows a lot challenges especailly the relation between the system and the people. Is the system for the people or is it for the system itself? I tend to think the latter. And my question is why? One of the answers is to protect the system and its integrity so that is continues to perpetuate. To do this lead to a very controlling and interventionist strategy, ideology and practice. But in the environment of free market is a challenge.
The recession in 2008 highlighted this because the system was out of control. But when the free market got into trouble it was the tax payer that came to the rescue in the big way. So it is a paradox.
The problems we are facing at the moment goes back to the depression of the 1930s. Afte that depression the devasting effect socially lead to the politicians [USA] devising a law to seprarate deposit banks from investment banks to keep away the speculators from the peoples deposits. But in the 80s after so much lobbying by the banks, Clinton signed a new law repealling this separation and that is how we have the financial system we have today where the banks now are setting their own agendas. And pofits is the primary motive.
Financial services no longer have a social or moral responsibilities but a market mindset. Even the people's Bank 'Kiwi Bank" has been questioned about their fees just like ANZ and the rest. Banks are no longer interested in little depositors. It is too costly with little return. So you get penalised if your savings drop below a certain amount if you have saving that is.
Banks are mainly insterested in the big holders of maney; these are the intituitonal investers because they deal with huge sums of money. The moeny they make from moving these huge amounts is phenomenal.
So this course has been really revealling and informative from an analytical point of view; examining the perspectives, philosophies and ideologies that informs their development, practices and role in society.
From a practical point of view though. I am more clear now of how I will structure financial literacy training I will offer. This will involve empowering people. The fact of the matter is we have the financial system we have now. And we need to learn how to use it to our advantage. This means exploring alternative ways of how to maximise the way we generate inomes and how we manage those incomes efficiently to meet the needs that we have in our daily lives and in the long term.
The simple fact is that the rich are rich because they know how to be rich and have all the tools to protect their money. I just read something on stuff this morning about the Cook Island where all the rich people are or have been hiding their money.
The poor people on the other hand will continue to be poor because they don't know and do not have the tools to make their money work for them. Their priority is to survive day by day. The middle people pretend they are rich and therefore don't care one way or the other.
Money is a tool. It is a tool to survive in the post industrial world where full employment is no longer a reality and government is powerless to bring the necessary measures to ensure fair distribution of its wealth to its citizens. Where it is powerless to quarantee minimum standard of living. Poweless to stop human necessities for survival being package into mehcandise and sold on the open market; health, education, housing, food, water, electricity, etc.
This is why this caourse has been absolutley great. It really has explained for me what the finacial system is and has given me food for thought on how to make the most of it for the rest of us.