The most frightening scene in the epic Frank Capra film "It's a Wonderful Life," is the Bedford Falls bank run in the rain, when George (Jimmy Stewart) Bailey abandons his honeymoon and struggles to hold off his neighbors who want their money, now, cash, now, from the humble Bailey Savings and Loan ...
Mr. Potter Rules. ...My grandparents lived through the bank runs of 1933 and never forgot the lesson for an afternoon nor let me forget it. There was a can of coins in the house, and my grandfather kept five-dollar bills pinned to his coat and vest pockets. The failure of Bear Sterns and then again the failure of Lehman Brothers were both caused by 1933-like bank runs, nothing fancier, when the market would not accept the word of the managers that all was well over the weekend and that there would be a rescue in place for Monday morning opening. The story is repeated in the Gulf. Dubai World, during a coincidentally convenient Islamic bank holiday, claimed it cannot meet a note due in two weeks. Dubai World's debts outweigh its asset worth. European banks are said to have at least $40 billion in exposure. In Bedford Falls, George Bailey pleads and argues and connives to keep his doors open until closing time. He hands out the last dollar to the last demanding doubting depositor just before he can close on time -- without a failure that would let the State take over his bank and permit the scourge Mr. Potter to rule Bedford Falls. What about the local Gulf banks that are exposed to the failed Dubai World debt -- the Dubai World Bailey Savings and Loan banks? The UAE central bank proposes cunning defenses. Enough? Unknown. Therein lies the fear of cascading smaller bank runs for the next weeks and months (small enough to fail) on our global road to Pottersville.
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I put a few thousand into my local credit union, which are insured by a different fund other than the FDIC, just in case.
I was Wal-Mart yesterday with a friend from college, he pointed out the nearly-empty bullet case. Walmart does NOT have inventory issues. Duchess county, NY is not a hunters paradise.
Same College friend is taking shooting lessons, but Like George Bailey, I believe in the goodness of my fellow men.
Katonah, NY near where I grew up in Westchester, looks an awful like Bedford Falls, and is in the town of Bedford, NY home to many a Wall street banker and Hedgies. The old steel bridge west of town is now a 4 lane concrete bridge near the Pepsi-Cola HQ.
AWL is a classic and always brings a tear to my eye.
Can you believe it? I had actually never seen 'It's a Wonderful Life' before last night. I know, they're always playing it around the holidays - been doing so for years. People always refer to it. It's an American classic of the highest order - but I'd never seen it; consciously avoided it, even. Last night, I decided to have a look.
Without a doubt, 'It's a Wonderful Life' is a rousing affirmation of everything that's good in America - at least, it was back when it was made. Hard-working, principled family man runs into financial trouble. He's at the end of his rope. 'Deus ex machina' solution sets everything right again. It all happens on Christmas and audiences can go home with a teary smile, believing in the essential goodness of men and God.
The movie also may have unwittingly pointed out the flaw that would eventually bring on our present fiscal difficulties. While watching the film, I hoped for it; I eagerly anticipated it; I relished the thought of it coming. It never came: I wanted to see Potter's reaction when it became clear that Bailey was saved. I wanted to see Potter racked by remorse; suffer a stroke - anything. I wanted to see him exposed. I wanted to see this villain pay for his sins. Nothing of the sort happened - not in the version I saw, anyway.
We, Americans are so quick to forgive and forget. Often, we forget before the villain has been punished. In recent years, we've even forgotten to look for the villain. The result has been that villains now expect to operate with impunity. What Americans fear most is guilt. Better to just clean up the mess quietly without asking too many questions. We forget that punishment is also a deterrent; that it would help us immeasurably in the long run if more of the rascals would get the message.
Now we've got rascals in government and deeply embedded in every one of our major institutions. We find ourselves reduced to just shaking our heads and muttering under our collective breath, "The system failed." We feel we're safe with that. Again, we're off the hook. We’re absolved from having to accuse, try and meet out punishment when an abstract ‘system’ can be blamed. The system doesn't care if we make use of it or not. It won't suffer regret and apologize. It won't change its ways. A system is merely a tool - in the hands of men - like a gun. We say guns kill, but it's not guns - it's murderous men. ...and men must be held responsible.
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