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FDIC shuts banks in Fla., Minn., Ariz., Calif.

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posted on May, 8 2010 @ 11:57 AM
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FDIC shuts banks in Fla., Minn., Ariz., Calif.


finance.yahoo.com< br />

CHARLOTTE, N.C. (AP) -- Regulators on Friday shut down banks in Florida, Minnesota, Arizona and California, bringing the number of U.S. bank failures to 68 this year.

The Federal Deposit Insurance Corp. took over The Bank of Bonifay, based in Bonifay, Fla., which had $242.9 million in assets and $230.2 million in deposits; and Access Bank, in Champlin, Minn., with $32 million in assets and $32 million in deposits.
(visit the link for the full news article)




posted on May, 8 2010 @ 11:57 AM
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And the fun just never stops!

More banks being chewed up and going under, while the top tiers continue consolidating and making record profits off of the fraudulent and tyrannical schemes.

Pretty soon there will be only one giant banking system---The CENTRAL banking system.

Hopefully by then the masses will have grown wise enough to begin splitting off from this fraudulent debt slavery enterprise, and have begun to move back to things such as bartering and trading actual things of VALUE, rather than imaginary assets and worthless "I.O.U" notes. LOL

finance.yahoo.com< br /> (visit the link for the full news article)



posted on May, 8 2010 @ 01:17 PM
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reply to post by DimensionalDetective
 


You're spot on D.D. S & F

Remember in grade school when someone would trade their bologna sandwich for a twinkie? Let's keep the barter system alive people, it works and it won't keep you in debt.

[I'll trade you Park Place for all your railroads ]



Peace




posted on May, 8 2010 @ 01:38 PM
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Yes, the Fed has attempted its first major enslavement of a Western country through its IMF (US) 'austerity' aka 'slavery' measures. Thankfully, the Greeks aren't lying down for it and hopefully the next victims (portugal, spain, etc) won't either.


Of course it will ultimately lead back to the US, the author of Derivatives. I don't think I need to explore the differences between the US and Europe when it comes to basic Freedoms. Nuff said!



posted on May, 8 2010 @ 02:01 PM
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More banks being chewed up and going under, while the top tiers continue consolidating and making record profits off of the fraudulent and tyrannical schemes.

Most of the banks that are failing are primarily due to speculative lending on residential real estate developments - i.e., whole neighborhoods of new houses, condos, etc.

Basically, these banks lent money to borrowers that never paid back their residential mortgage loans. The banks were left with a foreclosed property worth 40-50% of the original appraised value, while the borrower skipped town. These banks were royally screwed over.

Who borrowed the money? Speculators, house flippers, residential developers, builders. Very often, there was never a real borrower involved, or anyone that was occupying the home itself.

Most of these loans were speculative residential real estate investment loans - NOT owner-occupied real estate loans.

Then there is the epidemic of mortgage fraud. Some of the fraud took place internally - meaning the loan officer (typically a sub-prime mortgage broker and not an employee of the bank) was in on the fraud by submitting fraudulent loan applications. Other times, the borrower deliberately misled the bank by inflating their income, doctoring their credit reports, etc.

Interest-only, stated income loans at the time were common. What does that mean? It means that borrowers can inflate their income on their loan application, and didn't have to provide proof of income (via W-2's, tax returns, etc.). Countrywide, Ameriquest, Rock Financial and hundreds of other mortgage brokers pushed these loans. They baited the borrowers into "interest only" loans with promises to the borrower that the house would appreciate in 3-5 years and the borrower could then flip the house for a $50,000 profit.

Who is the victim in the case of mortgage fraud? The bank.

Why? Because at closing, the bank cut a check for a $200,000 house purchase. When they foreclose, the house might be worth only $100-125,000 on a good day - plus all of the ancillary expenses for collections, legal costs, etc. These houses aren't worth anywhere close to what they were worth at the peak of the real estate bubble.

Funny, everyone hates banks, when the banks were the ones that were totally 100% defrauded. It's so obvious.

The number one reason why these banks are failing is because of crooked borrowers, and deceitful sub-prime mortgage brokers. Granted, there are some borrowers that have lost their job, had a medical problem, etc. that fell behind on their mortgage payment. I get that. However, most of these failed mortgages are vacant properties where a straw buyer, a sub-prime borrower, or a fraudulent loan took place. I don't have much empathy for people that defrauded banks.

When a bank fails, many innocent people that work at these banks are hurt. Tellers, personal bankers, branch managers, assistant branch managers, loan officers, etc. - all of them are typically laid off when a new bank takes over the failed bank. This leaves a lot of innocent people without jobs, on the street unemployed.

Most of the banks are in the red zone of Arizona, Georgia, Florida, etc. where loosey-goosey lending took place to straw buyers and sub-prime borrowers.

The FDIC serves a vital function - They are protecting the depositors of these failed banks. I do consider this a good thing. Unfortunately, a lot of bank employees get hurt in the process by losing their jobs.

[edit on 8-5-2010 by CookieMonster09]



posted on May, 8 2010 @ 02:07 PM
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I'm guessing you or your spouse works at a bank? Maybe as a mortgage loan officer?



posted on May, 8 2010 @ 02:19 PM
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No, I have never been a mortgage loan officer. Thank goodness. However, I do have direct, firsthand experience with these matters, and I am an avid reader on the subject matter at hand.

I can tell you that there was a huge epidemic of mortgage fraud that took place. The perpetrators were primarily mortgage brokers and sub-prime borrowers. Not banks. People confuse the two.

A mortgage broker is NOT a bank. A mortgage broker typically had several funding sources, and they do not hold deposits. Examples: Countrywide. Not a bank. It's a broker and servicer of mortgages. Taylor, Bean, & Whitaker - Never a bank, but a broker and servicer. Rock Financial? A broker.

Mortgage brokers were sometimes referred to as "predatory lenders" for preying on the elderly, minority, and female borrowers. Google Ameriquest Mortgage sometime and you can read about the $325 million lawsuit for its predatory lending activities.

Oh, and Ameriquest? Not a bank. But certainly one of the largest sub-prime mortgage brokers back in the hey day.

None of these entities were ever banks. Don't confuse a mortgage company with a bank.

All the hatred directed at banks is misdirected. It should be directed at the true perpetrators of the crimes - Mortgage brokers and fraudulent sub-prime borrowers.

Also, Wall Street banks - and ratings agencies are to blame. Again, a Wall Street bank such as Goldman Sachs is NOT a retail bank. There is a huge difference between an investment bank like Goldman and a small town community bank on Main Street.

First, Wall Street firms like Goldman, Lehman, etc. simply packaged up bundles of these sub-prime loans and sold them to investors, claiming that they were AAA rated investments. This kind of investment banking activity - the packaging and reselling of bundles of loans - is not the same kind of banking that a normal brick and mortar retail community bank does.

Your typical retail bank got taken to the cleaners and was defrauded on a massive scale. Hence, we have unprecedented bank failures.

[edit on 8-5-2010 by CookieMonster09]



posted on May, 8 2010 @ 05:09 PM
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Rampant speculation is gonna happen when you make money too cheap for too long. The Federal Reserve, a group of private banks, held rates low too long trying to avoid the natural market correction (recession) after the dotcom bubble, which they also created.

Banks then CHANGED their lending procedures to ENABLE buyers to take advantage of this 'cheap' money. So the Banks (Fed) have worked themselves into a corner where interest rates are stuck at zero and they're printing money in our name to boot.


The bubble they've blown trying to avoid the real estate fallout is in Treasuries and therefore threatens our national security. The Constitution did not allow for a central bank for these very reasons. The 'fed' needs to go!



posted on May, 8 2010 @ 05:18 PM
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Hello all. I have a quick question. HimWhoHathAnEar mentioned the gov printing money for their own needs.

There was a post a few days/weeks ago that said something along these lines where someone admitted that the government printed about 1.3 billion dollars or so. I am about to hang out with a few friends and wanted to bring this up because we have always talked about this situation. Could anyone point me in the right direction or any keywords i should search? thanks!



posted on May, 8 2010 @ 05:21 PM
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There is a lot of centralizing going on, and after all, J. Rockefeller said that
"competition is a sin". I came across a local paper today to see that a downtown IDA will suffer and may have to close based on cuts to the "professional allowaces" afforded them. The hit transfers directly to the patient care and education quotient of the business, even while the bill lowers the cost of generic drugs.

I normally wouldn't complain about pharmacies closing, except that it can only mean that larger pharmaceutical companies are taking over - with more industry control.

Bill 102 could see small town pharmacies fold up

www.rainyriverrecord.com...



posted on May, 8 2010 @ 05:22 PM
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reply to post by BeastMaster2012
 


Yeah, it's on the breaking news thread list about half way down. Bernanke admits to printing 1.3 Trillion is the title.



posted on May, 8 2010 @ 05:22 PM
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reply to post by DimensionalDetective
 


My dear our entire economy and the so call US markets are nothing but scam a scheme played at the expenses of tax payers in the nation.

We are already been owned by the Banking system and the Fed.



posted on May, 8 2010 @ 05:40 PM
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Originally posted by BeastMaster2012
Hello all. I have a quick question. HimWhoHathAnEar mentioned the gov printing money for their own needs.

There was a post a few days/weeks ago that said something along these lines where someone admitted that the government printed about 1.3 billion dollars or so. I am about to hang out with a few friends and wanted to bring this up because we have always talked about this situation. Could anyone point me in the right direction or any keywords i should search? thanks!


the figure was 1.3 Trillion
Read this guy LINK
his links will take through the truth about paper monies...

Excerpt chosen for your entertainment:


Buy gold, buy silver, buy a farm or a revenue-producing, depression-proof business, but y'all had better do something while you still can. When the bullets start flying, it's too late to buy a pistol.

Ponder this from Dr. Robert McHugh of www.technicalindicatorindex.com:

"The Wilshire 5000 Index, which is really about 6,000 stocks, is essentially the entire U.S. listed stock market. This index tells us the U.S. stock market has lost $1.0 trillion of value over the past two weeks. All the gains over the past 2 months have been wiped out in the past two weeks. It took just two weeks to destroy two months of gains." (I strongly recommend Dr. McHugh's letter to all serious investors.)



-------------------------------------

The act of acquiring silver and gold helps force governments to be a bit more honest.


[edit on 8-5-2010 by seataka]



posted on May, 8 2010 @ 05:43 PM
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Well, I live in Minnesota...

I think I am going to go visit that bank and see if they will sell me one of those capsule things that they use at the bank drive through (the thing that shoots through the vacuum tube with your deposit in it)...

I always wanted one of those!



posted on May, 8 2010 @ 05:51 PM
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Originally posted by seataka

Originally posted by BeastMaster2012
Hello all. I have a quick question. HimWhoHathAnEar mentioned the gov printing money for their own needs.

There was a post a few days/weeks ago that said something along these lines where someone admitted that the government printed about 1.3 billion dollars or so. I am about to hang out with a few friends and wanted to bring this up because we have always talked about this situation. Could anyone point me in the right direction or any keywords i should search? thanks!


the figure was 1.3 Trillion
Read this guy LINK
his links will take through the truth about paper monies...

Excerpt chosen for your entertainment:


Buy gold, buy silver, buy a farm or a revenue-producing, depression-proof business, but y'all had better do something while you still can. When the bullets start flying, it's too late to buy a pistol.

Ponder this from Dr. Robert McHugh of www.technicalindicatorindex.com:

"The Wilshire 5000 Index, which is really about 6,000 stocks, is essentially the entire U.S. listed stock market. This index tells us the U.S. stock market has lost $1.0 trillion of value over the past two weeks. All the gains over the past 2 months have been wiped out in the past two weeks. It took just two weeks to destroy two months of gains." (I strongly recommend Dr. McHugh's letter to all serious investors.)



-------------------------------------

The act of acquiring silver and gold helps force governments to be a bit more honest.
At this time the US Mint is no longer selling silver or gold coins...


and


Yeah, it's on the breaking news thread list about half way down. Bernanke admits to printing 1.3 Trillion is the title.


Thank you. 1.3 bil.. TRILLION?!?! WTF. My brain hurts from facepalming my self too many times today.



posted on May, 8 2010 @ 06:05 PM
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and yet, america is considered safer than europe, or japan as far as national debt and the capability to pay it back.
china and the oil wealthy countries in the middle east will soon be our bankers anyway...america is already on a slow downhill slide...and we will end up with a population where 10% are wealthy and 90% are poor, just like our neighbors to the south, mexico.



posted on May, 8 2010 @ 07:04 PM
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Re "printing" 1.3 trillion...

This cartoon about Chief Justice Rhenquist is about a point on the event horizon of the apocalypse...LINK


[edit on 8-5-2010 by seataka]



posted on May, 8 2010 @ 07:50 PM
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Rampant speculation is gonna happen when you make money too cheap for too long. The Federal Reserve, a group of private banks, held rates low too long trying to avoid the natural market correction (recession) after the dotcom bubble, which they also created.

The crisis could have been averted with some very, very simple measures:

1.) 20% down required. No more "No Down Payment Loans". You want a house? You have to have a down payment of 20%. Period. End of story.

2.) Make "Interest Only" loans illegal. No more loosey-goosey predatory lending, with rates spiking after the interest-only period.

3.) Make it illegal for any bank, Wall Street investment bank, or any other financial institution to sell a loan asset unless they have held that loan asset on their books as a performing asset for at least 10 years or more.

4.) Make "Stated Income" loans illegal. You must disclose your income for the last 3 years in some verifiable form: W-2's, signed tax returns, etc.

5.) Keep mortgage brokers honest: 50% of the commission paid at the time of funding. Another 25% of the commission is paid only after the borrower has made payments on time for 6 months straight. And the balance of 25% of the commission is paid only after the borrower has made payments on time for 12 months straight. Another bonus is paid if the borrower has stayed current after 18 months.

OR:

Ban mortgage brokers entirely. If you want a mortgage loan, you need to go and see your local bank, not a broker.

6.) Stiffen the penalties for mortgage fraud. Make mortgage fraud punishable with a minimum of 25 years in jail, and 100% restitution for all monies stolen. Give the police the manpower, training, and resources to prosecute and go after criminals that committed mortgage fraud.

7.) Ban 80-20 loans. You can't take a loan out for your 20% down payment.

8.) Ban "House Flipper" loans. You want a house? You have to live in it. You can't be a speculative house flipper trying to make a quick buck in a rising real estate market. If you are a house flipper, guess what? That 20% down payment just became 50%.

Heck, if you implemented any combination of these measures we wouldn't be in the crisis we are currently facing.

Frankly, the mortgage industry came up with dozens of these totally ridiculous ways to circumvent traditional lending standards. It used to be that you could buy a $500,000 house on a stated income loan if all you had was a pulse.

Those kind of practices need to be made illegal, and common sense needs to prevail.

[edit on 8-5-2010 by CookieMonster09]



posted on May, 8 2010 @ 08:46 PM
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reply to post by CookieMonster09
 


Most of that common sense stuff was being used BEFORE the 'fed' made it easier for itself and others to get cheap money by keeping interest rates too low too long.

Glass-Steagal was also repealed through Wall Streets control of politicians. So banks firewalls to gambling were removed, which allowed them to start packaging this real estate based garbage into 'AAA' securities to turn around and profit off as well. So they had every reason to make it easy for people to get into them, since they needed more fodder to sell investors called Mortgage Backed Securities.

No, the fault lies directly at the feet of the 'fed', a group of private multi-national banks that have control of the interest rates of the US. At least they did until they painted themselves into a box by trying to skew markets into perpetual bubbles. Now they can only print our money into worthlessness.



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