The Banks

[cmascio]

This really annoys me. We as Americans need to fight this and say NO! If people lose their house they shouldn't owe anything to the banks, especially with the BILLIONS they got in bailout money at the taxpayers expense! What if a person has been paying their mortgage for 10 years? Does the bank return the principle that the borrower paid back already? They don’t! The banks just loan money out of thin air anyway, not like they actually had it to begin with. It is simply a computer entry. There is no more protection for Americans anymore; even Bankruptcy is coming to an end. Remember perpetual DEPT = SLAVERY

Just voicing my frustration as I know several families who are suffering through this kind of fraud right now.

http://finance.yahoo.com/news/Mortgage-lenders-pursue-cnnm-3107909798.html?x=0

 

[trentlogain2]

The banks just loan money out of thin air anyway, not like they actually had it to begin with. It is simply a computer entry.

of course i know next to nothing about it, but i wonder the accuracy of the above statement. /bookmarks

 

[Jnwaco]

It's called fractional reserve lending. It's a fair statement in some respects.

 

[cmascio]

We don't even use fractional reserve lending anymore. We have removed all the safeguards. Here is a good film on money fyi.

http://www.youtube.com/watch?v=KyDU4X8GSmE

 

[Jnwaco]

It depends on the type of deposit. Timed deposits don't require a reserve, other types still do.

 

[cmascio]

http://www.youtube.com/watch?v=pC8I3J-1GSM

 

[Inkachu]

Renting FTW!

 

[cmascio]

It depends on the type of deposit. Timed deposits don't require a reserve, other types still do.

Right.

 

[Jnwaco]

Here's the federal reserve boards current reserve requirements.
FRB: Monetary Policy, Reserve Requirements

It's not a lot of reserves, but they're still applicable. It does get ugly when people buy more than they can afford, which did cause some of this mess. But the banks probably shouldn't have been bailed out. Too much debt is a horrible, thing.

 

[Wren]

Renting FTW!

Indeed!

Even though I don't own a home, I still find this situation to be frustrating (the bankruptcy and homeowner's issue). Regardless of if you vote Democrat or Republican, chances are your representative in office is probably backed by enough corporate interests that the regular people get overlooked and shafted in the process. I liked some of the changes that happened with the credit card reform, but that kind of thing is so rare and reform usually means helping corporations, like with the changes in backruptcy laws that were made a few years ago.

 

[cmascio]

Here's the federal reserve boards current reserve requirements.
FRB: Monetary Policy, Reserve Requirements

It's not a lot of reserves, but they're still applicable. It does get ugly when people buy more than they can afford, which did cause some of this mess. But the banks probably shouldn't have been bailed out. Too much debt is a horrible, thing.

Thanks for posting that. The reserve requirements have gone down over the years. The whole system is a mess because it is designed to create more debt. When money is created, so is debt. The result? We are seeing it now…

 

[cmascio]

Indeed!

Even though I don't own a home, I still find this situation to be frustrating (the bankruptcy and homeowner's issue). Regardless of if you vote Democrat or Republican, chances are your representative in office is probably backed by enough corporate interests that the regular people get overlooked and shafted in the process. I liked some of the changes that happened with the credit card reform, but that kind of thing is so rare and reform usually means helping corporations, like with the changes in backruptcy laws that were made a few years ago.

Well said. Yes this is a bipartisan issue that Americans on both sides are struggling with.

 

[cmascio]

Campaign For Liberty — The Fed as Giant Counterfeiter   | by Robert Murphy

 

[ceh85]

n/m

 

[CoachR64]

Funny, but I don't really see how someone failing to pay on what they borrowed is the fault of the lender. People spend more then they can afford and want to blame it on everyone else. I don't even have a credit card. I just don't buy what I can not afford. That way, I never have to worry about it.

Coach

 

[cmascio]

Funny, but I don't really see how someone failing to pay on what they borrowed is the fault of the lender. People spend more then they can afford and want to blame it on everyone else. I don't even have a credit card. I just don't buy what I can not afford. That way, I never have to worry about it.

Coach

You bring some interesting points up and I agree that many people definitely made some foolish decisions financially. However keep in mind at the time our media, government, and banks were selling this whole idea of buying homes above our means. Still we are ultimately responsible for our mistakes. The real question however, is who is more at fault? The banks for lending mortgages out that people couldn’t afford, or the people for taking mortgages out they couldn’t afford? I would say both are at fault, however why is it the banks get “bailed out” on taxpayer’s money, they get to resell the foreclosed home, and finally they get to still collect compensation from the original buyer. Funny to when the original buyer will be paying for the bailout with interest through taxes, then he has to pay whatever compensation the bank demands. So you see how the large banks are coming out of this thing with ALL the benefits, while families are losing their homes. The banks get the bail outs (billions), the homes, and to continue billing the original buyers with interest. The banks get bailed out for thier mistakes, American citizens don't.


If you have no credit cards you are a smarter man then most. lol.. You have the right idea man.

 

[Jnwaco]

Funny, but I don't really see how someone failing to pay on what they borrowed is the fault of the lender. People spend more then they can afford and want to blame it on everyone else. I don't even have a credit card. I just don't buy what I can not afford. That way, I never have to worry about it.

Coach

That's precisely the problem, though. The banks and AIG were on the verge of defaulting, yet it became the taxpayer's burden. The banks took more risk than they could afford. There's no rule that says banks can't keep more than the reserve requirements with the Fed.

I'm like you, I have one credit card for automotive emergencies with a 0 balance. But there's a lot of people with a lot of debt, and the banks took that risk, not the taxpayers as a collective.

 

[Crosscheck]

Some people did make poor decisions regarding the house they bought. However, at this point in a deep recession it's simplistic to the point of being silly to say that everyone going through a foreclousure is just a deadbeat and we should bring back the debtor's prison.

 

[cmascio]

That's precisely the problem, though. The banks and AIG were on the verge of defaulting, yet it became the taxpayer's burden. The banks took more risk than they could afford. There's no rule that says banks can't keep more than the reserve requirements with the Fed.

I'm like you, I have one credit card for automotive emergencies with a 0 balance. But there's a lot of people with a lot of debt, and the banks took that risk, not the taxpayers as a collective.

Yes exactly! It isn’t the responsibility of the tax payers to bailout banks and large corporations who do a poor job running their business. In a truly free market, companies that run their business foolishly will go out of business. This leaves room for businesses that are wiser in their decisions. We don’t have a true free market today in America. These bailouts actually make things worse in the long run and they are completely unconstitutional. I read something the other day that said with all the billions we paid in bailouts, they could have used that money to pay off all the mortgages in country. Think about that a second.

 

[Riddik7]

ug banks will do anything for money... sometimes i wonder if they even have any limits on how far they will go....

i remember i had a 50 dollar bill on a card to pay... so i set up the payment for auto... the bank then decides to create a savings acount without my permission and then transfer all my money over... so then when my payment goes through it declines... the bank says i dont have any money and then because i had a declined transaction they say 'oh hey he has money over here lets take it....

i had 2k vanish from my account this way... and my 50 dollar bill jumped to 4k.... i hate bofa with a passion...