It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Banks To Us: "Thanks For The Cash - Now Get Stuffed, Suckers"

page: 1
5

log in

join
share:

posted on Oct, 30 2008 @ 04:02 AM
link   
Remember the $700B that was *desperately* needed so the banks could loan it? Well, the banks took the cash, but they're holding on to it instead of loaning it - and they're not ashamed to say so.


"Now, lo and behold, with $250 billion in bailout funds committed to dozens of large and regional banks, it turns out that many of the recipients of this investment from taxpayers are not all that interested in making loans. And it appears that Mr. Paulson is not so bothered by their reluctance... Asked how an infusion of $25 billion of bailout funds would change the bank’s lending policy, an executive said the money would be used to buy other banks. “I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way,” the executive said. He added that the money could also be used as a backstop in case “recession turns into depression or what happens in the future.” There was not a word about lending — not to businesses or home buyers or car buyers or students or other consumers. Just the opposite. In response to another question, the executive said that the bank expected to continue to tighten credit. JPMorgan Chase is not alone. The Wall Street Journal reported on Tuesday that some regional-bank recipients of the bailout money had acknowledged that only a small portion would be used for loans and the rest for acquisitions and other purposes."


Loans? Did We Say We’d Do Loans?
www.nytimes.com...

Correct me if im wrong, but wasnt the whole point of the bailout to get banks borrowing again? And now there saying there gonna hold on to the money?

If this is not a b**ch slap to america then i dont know what is.. These people need to be taken out on burnt!



[edit on 22/06/2008 by Truther]

Mod Edit: Profanity/Circumvention Of Censors – Please Review This Link.


[edit on 30-10-2008 by Gemwolf]

[edit on 22/06/2008 by Truther]




posted on Oct, 30 2008 @ 04:15 AM
link   
I think most people expected this outcome and that's why they were so against the bailouts in the first place.

We're in Spain and our bank has just completely cancelled our credit card that had a 2000 euro limit. No explanation and no apparently obvious reason - just cancelled. It's not even a credit card where we pay a minimum amount each month, the balance has to be paid in full on the last working day of every single month and we haven't even missed a payment.

The roof of our house fell down last December, during a storm, and the insurance company refuse to pay because 'the roof wasn't well enough maintained' - who knows that their roof needs maintaining until there's a problem. We asked the bank to lend us the money for a new roof and was told that they weren't lending - that was back in January. Now we've been forced to rent somewhere for the past 10 months and keep paying our mortgage. We don't want to let our home go so we're trying to save enough to pay for a new roof but it's difficult to save anything when prices are going up, we're paying rent and a mortgage.

To add insult to injury the bank have paid the insurance company for another year's insurance! They insist we have to have the insurance even though there's pretty much no house to insure as it's been open to the elements for 10 months.

Banks and insurance companies, all over the world, are just plain greedy and I hope they get what they deserve!



posted on Oct, 30 2008 @ 04:27 AM
link   
reply to post by Maya00a
 


Im really sorry to hear about your house, and yes they reckon that the next thing to collapse is the credit card!

This would surely stur a hornets nest, alot of people rely on them for just practical living.

The future is looking bleak my friend, we're all in the same boat though, Chins up..



posted on Oct, 30 2008 @ 04:59 AM
link   
I have been screaming this to anyone who would listen ever since the original "bail out" was proposed. Look, it is simple economics. On a micro scale, it goes against basic economics to give a tax refund in the middle of a recession and expect it to stimulate the economy. This is what every one of Bush's economic advisers told him, and any second year economics student would tell you. Look at it this way, if you think tomorrow is going to be worse than today and the government gives you $500 dollars, are you going to rush right out and spend it??? No, you are going to "horde" or save that money. This is exactly what the banks are doing on a macro scale.

Without some guarantee from the banks that they were going to use this money to continue lending, they should have never received it in the first place. What they should have done is said that any money accepted by the banks that is not lent out in say 6-12 months, must be given back to the government. That would obviously light a fire under their butts and ensure that this money fulfills its intended purpose and stimulates the economy.



posted on Oct, 30 2008 @ 05:01 AM
link   
reply to post by Truther
 


Thanks Truther. If we're anything to go by then yes, credit cards look to be the next target. I was quite surprised that this credit crisis news has taken so long to reach the wide audience as we were told the banks here had all stopped lending back in January.

They'll probably leave the credit card limits available until after the holiday season and then everyone will get a shock in Jan/Feb when they find their limit cut or card cancelled along with a demand to pay the difference/balance. That is going to seriously hurt a lot of people but it wouldn't surprise me in the slightest.

The bank cancelling our card, for no reason, was the final straw for me but we're just about to secure a large contract (we're self employed) and if that goes through I bet the banks will be all over us wanting us to borrow money from them! Not a bloody chance I'll be borrowing anything from them ever again, no matter how low the interest rate they offer. Not when they can pull the rug from under us any old time they choose.



posted on Oct, 30 2008 @ 05:03 AM
link   
Where I live there a number of foreclosed properties. I'm retired now so I was thinking about buying a few of them to rent out to the university students. Give something to my daughter so she'd have steady income for my granddaughter.

anyway I went to the bank with my business plan. I would buy three small 2 bedroom houses in cash then take out a small loan to fix them up so people could live in them.... I used to be a contractor way back when... this is all stuff I can and have done on my own in the past so it should have been no prob right?

Well you guessed it the bank said no. not just them but three other banks said no too! they were more than happy to sell me said houses clean out my savings as it were, but absolutely refused the loan to fix up the old places to make them livable! even when I argued the business account and revenues would all come back to their bank, they still didn't care. "You know money is tight Mister Bare. we just cant take the chance at this time. try again in a few months"!

so much for getting the economy back on track....



posted on Oct, 30 2008 @ 05:48 AM
link   
reply to post by DaddyBare
 


I am also in the building game myself, and it is indeed getting bad. The bigger contractors normally depend on there banks to fund each project.. Where i live there are 4 big construction sites that have halted work because they cant fund them, now im struggling to keep myself in work.. Its turning into a disaster, it really is...



posted on Oct, 30 2008 @ 09:58 AM
link   
One has to really 'read' the wording in the Bill

the money has the intention to 'free up' the credit markets...
that does not translate literally into the practice of 'Lending'


banks which have previously approved open lines of credit to corporations
are now requiring them to re-apply, the new short term loan arrangements
can be 6% above 'Libor' and include scruitiny of the borrowers past & present positions in derivatives like credit or interest swaps, &/or default swaps... as these 'betting' positions can almost instantly bankrupt a companies Treasury if the counter party seeks payment etc.

~So~

those 3rd tier securities, those hidden from the public 'balance sheets',
are indeed giant financial Bear-Traps, ready to snap.

that is one reason the banks are hoarding the cash, because they are also jockying with one-another on keeping their own portfilos of 'swaps' secret...
along with reason #2, which is the anticipated M&A which will take place in 2009, as local banks, & the larger Regional Banks get gobbled up by the Big-Nine banks, which were allowed to rise-to-the-top by the Fed/Treasury



posted on Oct, 30 2008 @ 10:09 AM
link   
yep this bill was bullcrap from the get go, i called and told them not to pass it along with millions of others in droves.. yet they passed it , our congress critters have betrayed the public,, fire them all..


As for the credit crisis, if they start canceling cards on people this is going to be a economic pandemic.. people will start pulling cash from banks causeing bank runs with there distrust of the banks.. once you see afew news stories or articles about it the banks runs will start and it will all be over.. in some way i think the banks realize this and may be not loaning money for this very reason to keep what they have and make out with it if the system fails...

Now if depositers cant get there money FDIC will step in but if you followed the banks runs on the first banks that went under earlier this fall, it took people weeks to get there money.. and then only got part of it.. weeks for most people will put them so far behind and or not eat for weeks.. this could turn into civil unrest really quickly.

Most Americans live pay check to paycheck and keep any saving in the bank.. if you cant get your normal cash and savings , what are you going to do ?

This why I stock pile.. I have months worth of time that i can live quite well with no cash.



posted on Oct, 30 2008 @ 10:19 AM
link   
What i find over the top hilarious is that they are using the money to take up dirt cheap shares of other companies so they can take them over. Who would have thought? But wait if we are the ones paying the tab doesnt that mean we get a stake? hmmm Guess NOT, we just get to pay them to get even richer. While we sit back and watch all the sheep they control being made to starve and lose everything they ever had. ( dont mean to be rude with the sheep comment but really thats what they think we are its ohhh so obvious now!)
Oh and by the way incase you missed the white house release. they cant make them lend it out to us! They can use it anyway they want because there is nothing in king paulsons bail out farse that says what they can and can not do with it. Further we cant even sue their butts for this;that my friends is in there

Everyone thinks the stock markets are going up because people are buying back in, NOT the case people if you notice all the reports the BANKS are going up. This because they are "spending" the money to take over. Pay attention over the next week or 2 when they run out of money and stop buying everything up the market will HALT



posted on Oct, 30 2008 @ 10:24 AM
link   
reply to post by E-ville
 


Bank runs are no longer possible. the maxium in cash any bank is allowed to have on hand once the bail out passed was $25,000. That lil diddy makes sure we cant get anything back; when they decide we arent doing what they tell us to and shut the banks. Oh and we cant stop that either because the "shares" the gov got are non voting and non everything other than heres a wad go spend it!



posted on Oct, 30 2008 @ 02:14 PM
link   
Yep, just can't wait till the Gubmint got no money left and then they can't enforce anything based on IOUs. Sure will be alot of hangings in New York, Connecticut, Massacheusets and other big Banking Centers.

Wait! maybe theres enough time to build a Guillotine I can rent out?



posted on Oct, 31 2008 @ 09:53 AM
link   
I 'd like someone to think through the idea that
the investment banks like JPM & GS, you all know the cadre of elite banks

the ones who devised & created, promoted, then saturated the OTC derivatives markets will all sorts of 'swaps', credit swaps/interest swaps/default swaps... to the tune of Trillions in un-backed securities.


some of this 'funny' paper was given the gloss & sheen of being 'mortgaged backed scurities'... other debt paper was very marginally titled 'bonds'...
but the whole thing is that only about 1-10% (max) of the 'value' of these
paper debt-slips were backed by any money or collateral of worth or value,
all these slips of paper were just promises to pay... 'faith' policies...

which means to my way of thinking.... These Banks, investment banks were actually creating counterfiet money

The Fed/Treasury intervened to the benefit of the big banks & investment firms which issued this un-redeemable paper...and made good on the 'worth' of that privately issued paper with taxpayer money....


in essence the JPMorgans, GSachs, et al, all created money-out-of-thin-air

knowing that a reasonable US government would make good on their private, unregulated debt paper...because too many foreign nations held too much of the bogus debt paper, and if the US gov't didn't back the default swaps, CDSs, CDO, MBS et al.... the global faith in the civilized financial system of trade & currency/equity markets would collapse.


The 'bonuses' these connivers should get is the generousity of life imprisonment...because it is considered criminal, in stealing the powers of the Congress & the Federal Reserve to create money...
which the Issuing & selling of these unregulated securities by these several 'Investment Banks' ammounted to; issuing counterfeit money & anticipating the Fed/Treasury to make good on the total pile of debt (aka: fake money)



posted on Oct, 31 2008 @ 03:41 PM
link   
lordy - lordy ....
at around 3:50pm eastern one of the regulars on CNBC interviewed another 'expert'...
both were agreed in principal, that none of the derivatives/CDS/CDOs/MBS paper was intrintistically meant to be used as illegal methods to extract wealth from the investment community...

they both agreed (in principal)... that the creation of these outlandish debt securities were 'created' as a magnamious intellectualization on how to 'spread-the-risk' in a equitable and idealized manner.

to my sore ears, this sounds like a self-back-patting exercise by these two bubble-vision host & analyst team... possibly to endear themselves to the 'defense' teams strategy of the elite CEOs, (which includes former GS CEO Hank Paulson who was instrumental in creating these hybrid/chimera debt instruments, in the first place.)


i counter that selling, at margin rates, trillions of $$ of 'bets', does indeed help protect the degree of 'risk' on an individual basis... but the criminality exists in the fact that multiple magnitudes of value, far beyond the worth of what is being 'bet' against... say a default position on some mortgages...
the capital kept rolling in... so as to make the issuer a 'Too Big To Fail' insurer...and a federal or government agency found it necessary to involuntarily 'underwrite' 'financially back-up' all the derivative swaps created out of thin air.

Ergo, the intent & purpose of flooding the markets with overrated debt paper/securities at 100-10,000X the values of the underlying assets was a criminal intent.

And not this lame excuse by apologists on the media financial channel to say that the purpose & intent of creating & then selling Trillions of (unregulated, fraudently overrated) OTC debt paper... which insured maybe $10 Billion of companies/insurable positions/futures--

i'd say that (the above paragraph) is as illegal as selling 'naked shorts'....
see the thread about the VW & Porsche wing-ding...


rant over... thanks...
well it's public anyhow.



posted on Oct, 31 2008 @ 06:49 PM
link   
reply to post by Truther
 


We purchased Preferred Stock....

The Companies are not obligated to use the money to any specific demand, it was a capital infusion and they are free to do as they please... Gov didn't even get a majority share hold.

Now what do we do about this?

My recomendation involves a march, an arrest, and a public display involving some rope to advise the rest of our.. er.. government .. what happens when you rape the little guy.

Of course, I won't give that recommendation for fear of being hunted down for terrorist activity or what have you.

I only wonder where the back bone of our people went..

In the 1700's if this occurred, we would have redeemed the injustice in blood.

Now we just sit at out computers and say "oh # me.. what can ya do?"

So my real advise is.. and I encourage every citizen of this country to take this advice and run with it...

GO WITH CREDIT UNION WHERE DEPOSITORS OWN THE BANK ...

WITHDRAW FROM ANY CORPORATE BANK THAT ABUSED THE RESCUE PACKAGE

REFINANCE WITH CREDIT UNIONS

DO YOUR BANKING WITH CREDIT UNIONS

AND BUY FROM COMPANIES THAT ARE NOT BEGGING FOR OUR MONEY THEN TURN AROUND # US AND EVERYONE WE KNOW WITH 30% INTEREST RATES!!!!!!

Do that.

Send them a message.

Hurt them.

Bring these institutions down and reward those who made smart choices.

Boycott JP Morgan, Bank of America, Well Fargo, Citi Group, PNC, the various Regional Banks, GM, Ford, and Chrysler..

Boycott them all damnit.. They want 700billion FINE... let's take OUR $700 billion back from them in the form of DEPOSITS.

I urge EVERYONE to do this.




top topics



 
5

log in

join