I am sorry to hear you will not be reading my book since I spent a lot of time writing the book to explain these exact points and I will not be able to that here.

As you said banks have access to capital and they control the terms of that access. They are in a sense negotiating with themselves, the foxes guarding the chicken coup. So, instead of fixing the economy they are mainly concerned with their financial products.

Asset prices are not merit based they are based on bidding / free markets. Current asset prices are substantially above book value (the merit price) because there are more buyers then sellers.