Tuesday, September 8, 2009
Mark Zandi - the highly influential economist, and chief economist of Moody's Economy.com - recently told the Washington Post:
There's been a significant consolidation among the big banks, and it's kind of hollowing out the banking system. You'll be left with very large institutions and small ones that fill in the cracks. But it'll be difficult for the mid-tier institutions to thrive.
The oligopoly has tightened.
"Oligopoly" is an economic term which means that a given market is controlled by a small group of firms. Think "monopoly" by a few companies.
On the other hand, an "oligarchy" is a political term which means that a government is controlled by a small group. Think "monarchy" by a few rulers.
But since the biggest banks and financial giants do control America, the two terms are arguably synonymous and interchangeable.
As I have previously pointed out, two leading IMF officials, the former Vice President of the Dallas Federal Reserve, and the the head of the Federal Reserve Bank of Kansas City have all said that the United States is controlled by an oligarchy, and directly or indirectly said that the big banks and giant financial institutions are key players in that oligarchy.