Month: November 2011
OWS has one target of many… Those Evil Bankers.
Here is my take by point…
- Today’s bankers WILL NOT loan you money unless you have either the money or highly discounted collateral available to them to pay them back.
- Bankers loaned a lot of money to banana republics because the loans were guaranteed by the U.S. Government.
- They periodically try to make nice with consumers through various promotions. I’ve not been able to understand their motivation as yet.
- They’ve gone fee crazy because the Fed had driven interest rates through the floor not allowing anyone any benefit for loaning money to previous expectations.
- They pay squat interest rates and may even start charging you for “holding” your money for you. (Negative interest)
- In steps the strong-arming U.S. Government forcing them, against better judgement, to make risky loans to those unable to pay them back or those who would not normally qualify.
- The Federal Government then bails them out and slaps many of their hands big time.
- The banks try to build up their reserves to more conservative levels.
- The Justice Department goes after banks because Barney Frank is again yelling we are not getting people into houses.
How stupid and corrupt can a system be? We haven’t even started on the relative merits of the Federal Reserve System, which can print money and give first users of that money the full un-inflated value of that money. Driving interest rates so low HAS NOT been to spur growth in various sectors. Most companies factor interest rates into their cost of business. Certainly, the lower the better, but the real reason, in my mind was simply a hedge against Federal debt service, nothing more. Want to bring the whole thing down? Try to raise interest rates to the “keep pace with inflation” level of old and see what happens. With CD rates in the 2-3% range, I reckon holders are losing at least 10-15% capital value per year just through inflation and devaluation of the currency. Mind you, the stimulus money still has not fully impacted our economy as yet except for the obligatory union and crony payoffs, public jobs, etc built into the scheme. When it does, Weimar Republic here we come!
What’s missing from this banking fiasco that the morons of OWS will never understand?
Bankers with a backbone and good business sense.
For the most part, the head guys are nothing but overpaid caretakers of wealth that someone else created. This is very similar to GE, GM, etc. Did I hear crony capitalism? Yes, indeed that is the case for banking, as well. Mr. Geithner should have NEVER been approved for his position. Greenspan and Bernanke have become bumbling fools in my eyes, as I did deeper into their folly. Many have written about how the monetary and financial systems have so deliberately become intertwined, that it has become a house of cards to the detriment of us all.
Never in my life have I ever seen so much money in the hands of such incompetency. George Soros is loving it!
P.S. Anyone with experience or knowledge of the fiat currency system, please let me know.