Heartland Tri-State Bank in Elkhart, Kansas, has officially closed its doors, and it’s the fifth bank this year in the US. The Bank Commissioner of Kansas ordered the shutdown because it strengthened the overall banking system during austerity periods. This intentional move paves the way for stronger remaining banks to thrive.
Yet, bank failures reflect a daunting aspect of the banking industry. It raises questions about whether government control could secure a better outcome. For example, the government could manage all lending at sensible rates. They could also pause loan growth to curtail inflation, negating the need to tamper with rates. These possibilities, under a non-profit model, are worth considering.
Moreover, all bank deposits would have guaranteed safety under this system. Currently, the banking world operates as a capitalist profit game, a model that often clashes with the system’s financial stability.
There are speculations that these bank failures are all stepping stones to reach the Agenda 2030 goals. The agenda proposes a scenario where people will own nothing but will find contentment regardless.
Finally, in related news, Mortgage News Daily reported that the average US mortgage rate for 30 years has shot up to 7.12%. This information is another interesting point to note in the current financial landscape.
