Czuch: --What is the upside for a bank to become "predators"?--

The upside is that periodically they get to tighten the money flow, call in loans, not allow more loans to cover payments due, and foreclose....thus transferring property up the line.

Here's a whole list of great educational resources on Money & Banking:
http://www.realityzone.com/banking.html


It does come down to greed, including greed from customers, for which they are responsible. That doesn't change the fact that the entire social mechanisms in place are designed to cultivate that greed...that it is in a very real sense programmed in.

You are right in that there is no governmental solution. The solution is for the government to step out of the way, let the competition of the free market decide these issues...and stop bolstering these banks which don't mind getting into financial trouble because they know the government will bail them out. Socialism at EITHER END...for the banks or for the customer....is destructive to liberty.