Friday, February 5, 2010
Bank Bailouts
Saturday, January 30, 2010
So much has been going on throughout this last decade and even the decade before. Many executives running these major financial institutions are just downright unscrupulous. The days of the neighborhood banks where you could walk in and everyone knew your name, such as The Bailey's Building & Loan in "It's a Wonderful Life," are gone. I think we are living in "Pottersville" now. The people that run the banks don't care about you as a person. All they care about is making money off of you.
Financial institutions are charging astronomical percentage rates on credit cards to keep people in debt. They extend more credit to lower income families, knowing that they will not be able to pay that debt which in turn causes more foreclosures -- just like Mr. Potter did in the movie. Then, what happens to the banks when they have all of these foreclosures? They go to the government to ask for a bailout. The way our government was originally set up, if a company could not pay their bills, they went out of business -- simple as that. Do you think if I had a business and I couldn't pay my bills anyone would care? No. If Mr. Ford was not able to sell his Model T's in the early 1900's then he would have gone out of business. But instead, these banks go and ask for help and the government gives it to them.
Not long after they were bailed out, we heard many stories where top executives were taking extravagant corporate retreats or "needed" to have their offices remodeled to the tune of millions of dollars. I'm sure that office was in a total state of disrepair and really needed millions of dollars of remodeling -- don't you? There was even talk about many of the executives getting raises in order to keep them there. I really don't think raises are necessary to keep them there -- they should have just been happy to have a job. I mean, seriously, just a few months before they were in "bailout" mode and were at risk of having NO job at all.
It makes me sad to see how twisted everything has become. Why can't life be simple again as in bygone days? I'd like to go into a bank that was run by the type of people that "George Bailey" hired. Wouldn't it be nice to go "where everybody knows your name?"
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Unfortunately, it's a double edged sword in the type of economy we live in now. Either we save the banks, or we face another massive national (possibly international) depression. I completely agree that it went against the grain of how a capitalistic market is supposed to operate, but at the time it was the examination of the lesser of two evils. Coupled with the beginning of the recession, and the threat of ever rising gas prices, a massive collapse of the financial backbone seemed like the iron wrecking ball that would break the camel's back.
ReplyDeleteNow we're making the banks pay those mis-spent funds back... but I wonder if it's really too little too late? If it's just a punishment that will result in high banking fees passed on to the American public?
I agree with both of you. We're in trouble no matter what we as ordinary citizens try to do, the banks are going to charge us in the long haul. I need a lot of remodeling down to my 82 year old house. To the tune of approximately $42,000. Do you think anyone would just hand me the money?!!! Don't think so!
ReplyDeleteI agree with Trent with how we live now. These bank are only looking out whats best for them, instead of working with the American people. Greed has gotten us into the position that our country is in now. People do not look after and help others. Everyone is out for themselves. We might be in a better position if we look after and helped on another. It is a sad situation.
ReplyDeleteWhen I turned 16 I had saved up almost enough money to buy a car,I needed 500dollars more, I went to my bank,when i walked in I was sent to the bank presidents office,who was also my Boy Scout Troop Leader,I told him I needed 500dollars to buy a car and he asked me to sign one peice of paper and gave me 500 dollars in cash.When my wife and I bought our first house we had to take more paperwork to the bank than I knew existed,wait 56 days and sign so much paperwork that we got hand cramps.Back then the Bank President drove a beat up pickup truck,the President of the bank where we got our home loan,drives a BENTLEY.?
ReplyDeleteI agree with all of your comments. It's disgusting what they do to American citizens. I actually saw a lawyer on TV about 3 days ago that is going to sue one of these big banks for "upping" his interest rate and also lower his credit balance when had never had a late payment to them. They had run a credit check and found that he had one late payment showing up with another creditor sometime during the last ten years which gave them the justification to show him as "risky." He was a timely paying customer for them. How does that make hims "risky" for something that may have happened 8-10 years ago? I hope he sticks to his guns and sticks it to these banks. I'm so fed up. I'm slowly but surely paying off every card I have. It would be wonderful if all people could do this and stick it to them. :)
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