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Originally posted by CookieMonster09
Complaining about interest rates, eh? Hmmm. Interest rates are the lowest they have been in decades. They are at historical lows.
Originally posted by CookieMonster09
I can also assure you that banks have significant assets - stocks, real estate, land, equipment, reserve cash, etc. They operate as a business, just like any other company. This whole notion that they "create money out of thin air" is total nonsense floating around the Internet in these goofy videos.
Originally posted by CookieMonster09
If it costs Ford Motor Company $15,000 to manufacture a car, and it sells that same car for $20,000 to a consumer, did Ford Motor "create $5,000 out of thin air"? No, I didn't think so.
It's called profit. Banks are no different. If they lend you $200,000, they expect to earn interest on that money. Interest earned is profit to a bank for the risk that they are taken in the event you skip town and default, which is all too common nowadays.
Originally posted by CookieMonster09
And, if you don't like the interest rate, go ahead and pay the loan off before its maturity date. Instead of taking 30 years to repay your mortgage, pay it off in 5 or even 10 years and save yourself all that interest. Your choice.
Originally posted by CookieMonster09
And, what happens if you default? The bank has the oh so pleasant task of foreclosing on your house (a very costly and time-consuming process, and oh so terrific for public relations - NOT). In today's market, a house worth $200,000 5 years ago is not even worth $125,000 nowadays.
Originally posted by CookieMonster09
The bank gets to take a $75,000 loss plus all of the ancillary expenses associated with foreclosure. The bank is left holding the bag.
Take your collateral for the cost of computer hard drive space or a little ink. Foreclosure is theft, because the bank took very little risk creating that money for you. Why do they get to create money out of thin air, but we have to get money the hard way??
For those of you who are actually defending the banks and their practices, I recommend you check out the book The Creature from Jekyl Island to find out how the system really works and how the banks and the banksters have been stealing away the wealth of the American people through inflation since the inception of the Federal Reserve.
No more compound interest.
Credit available publicly.
An end to the fractional reserve system. Banks creating money out of thin air, then using it to force you to give up your collateral is fraud and theft.
Originally posted by davidgrouchy
Was that a church,
a town hall meeting,
or a commerce rally?
David Grouchy
The FED sets the prime rate. Everything else is higher. So if the prime rate hits 10% then you'll never find a loan for less than that. It's artificial manipulation of the market, because the FED is a controlling monopoly on credit.
Since the Fed creates this money out of thin air, and so do it's member banks, and so do the commercial banks, charging interest on something created out of nothing is an enormous profit.
The bank only has to have a small amount of money. They loan out much more than they have, usually at least by a factor of ten.
And this "profit" you speak of is simply the added value you get when you take raw materials and arrange them into an automobile. It's worth more that way, and so that's what people are paying for. The business might call it profit, but in reality it's an exchange for similar value
Most banks won't let you do that anymore. Somewhere in the fine print of your contract they have made sure that they're going to get all that interest from you in the long run.
Are you really serious trying to convine us that the bank doesn't gain in foreclosure?
How can you call that a loss, considering that the fractional reserve system let the bank create most of that money out of thin air in the first place?
Did you miss the memo that the FBI said that 80% of the mortgage fraud being conducted since 2000 has been committed BY THE BANKS?
In some cases they reaped huge profits by betting against the MBS they themselves created using additional complex derivatives...derivatives engineered by their own in-house quant jocks.
Who bailed-out Fannie/Freddie ? The taxpayer...$145 billion and growing.
The Fed monetized (purchased with newly created "money") a minimum of $1.30 trillion in toxic MBS dumped by the banks, and $200 billion in agency debt....a stealth tax on every American breathing.
Tarp funds were issued with a pile of regulatory red-tape including limits on executive bonuses, as a result, some recipients rushed to pay back that money just ahead of bonus season.....go figure ?
Banks willingly turned a blind eye to creditworthiness,