Stunning Number: Big Banks set to lose 70,000 accounts today

reply to post by AtticusRye


now lets factor in the millions made by atm debit card fees and those little minimums at the store like you cant pay for this with that unless your buying 20$ or more. You may be more well versed in economics but I do know that a debt based system requires someone controlling mass debt if you want to look at it like that i do my point is it is very powerful for people to do this it makes a statement it is saying F you people want to bail themselves out they are not looking for handouts they are doing what they can to look out for themselves. 2.5 billion is ludicrous but were the banks given that and more during the bail out fire sale? Also I don't really disagree with you on what you said but the banks need strong customer support to stay afloat, they really do 650,000 people leaving out seems like a lot of un satisfied customers.

reply to post by EarthCitizen07

Who NEEDS a boat? How many people are actually going out and catching their own fish to eat and not spending 10 x the amount they could've purchased the fish for in the store in gas,tackle etc..?

I personally have paid cash for every vehicle I have ever owned(boats included) I just saved up until I had the cash to upgrade from the vehicle I was currently driving at the time. Granted I never purchased a brand new car off the showroom floor but I have managed to save up 7-8k and purchase a 4-5 year old vehicle for cash.

I will give You the house but that's it and even then I think people could save for a few (5-10) years and buy a house out right. Even if You had two people(husband and wife) working for only $20k a year each if one saved all their money and the other paid all the bills then in 10 years they could buy a $200k home outright.

I still stick by my original statement that people need to stop living outside their means, and You don't need credit to survive.

Originally posted by THE_PROFESSIONAL
Actually they lost 650,000 totaling 4.5 billion in accounts:

money.cnn.com...

Using fractional reserve banking, this means they wont be able to do 45 billion dollars worth of business lending. haha. Sucks for them.

So then the movement has hampered one or two shady deals. It's a good start, but it needs to get much bigger than that if the monetary system is going to notice anything.

Just in case most don't know, the derivative mess (bad debt) is valued in the tens or hundreds of trillions. A few billion isn't even going to be noticed (as can be seen by the need for QE2 after the first few hundred billion of QE1 did nothing much).

reply to post by Adamanteus


Life should be more than just the bare necessities. Granted you could save and buy everything without credit but is it really worth it? It all starts from an unjust wage system and capitalism is all about the money going up rather than down.

As for buying used stuff just consider how much spare parts cost, mechanical fees and downtime. Everything is over-priced 2-3 times more than original cost so people buy new. The system needs turnover so the people work and the rich get richer.

I'd just like to point out that right now as I am reading this thread there is an add for a citi bank card at the top of the page. What fun, eh?

Originally posted by RogerT

Originally posted by THE_PROFESSIONAL
Actually they lost 650,000 totaling 4.5 billion in accounts:

money.cnn.com...

Using fractional reserve banking, this means they wont be able to do 45 billion dollars worth of business lending. haha. Sucks for them.

So then the movement has hampered one or two shady deals. It's a good start, but it needs to get much bigger than that if the monetary system is going to notice anything.

Just in case most don't know, the derivative mess (bad debt) is valued in the tens or hundreds of trillions. A few billion isn't even going to be noticed (as can be seen by the need for QE2 after the first few hundred billion of QE1 did nothing much).

What we have is socialism for the rich and capitalism for the poor. Trillions of dollars in corporate welfare all from the tax-payer's back, yet no jobs and lots and lots of ceo bonus. The governments behavior is outrageous.

Not to mention four wars and military-industrial complex spending in anti-terrorism. I don't mind paying taxes but our money is being pissed down the toilet. Taxation without representation........

reply to post by Riffrafter

Van Jones wrote the article?



Holy crap.

Talk about a lack a credibility.

Originally posted by EarthCitizen07
reply to post by Adamanteus

 

Life should be more than just the bare necessities. Granted you could save and buy everything without credit but is it really worth it? It all starts from an unjust wage system and capitalism is all about the money going up rather than down.

As for buying used stuff just consider how much spare parts cost, mechanical fees and downtime. Everything is over-priced 2-3 times more than original cost so people buy new. The system needs turnover so the people work and the rich get richer.

I just don't want to live with overwhelming debt personally. I work where I may make $300-$500 a day for a period of time and then I may only make $50 a day for another period of time. I've set up my life to reflect this and in doing so I am comfortable knowing that IF I were to lose my job or go through a period of time where I had 0 income,that even though they may come kick me out of my home that I am not losing my vehicle,boat(s), furniture etc..

I can effectively sell any of these things to keep the home without having to default on a debt to someone else. By having paid cash for everything I own I have only one bill that I am REALLY worried about and that is the one that keeps a roof over my head. Stress free and loving it

Originally posted by EarthCitizen07

That would be ok if you already had a house, car and boat to begin with.

Boat???

Do you live in Venice? (Italy for some of the US folks!)

Hi,

Okay here's the deal..I got a tiny Chase account, I overdraft about 7 times a year, so small banks/credit unions don't want me..so I am stuck with chase..each month they snag a 10 user fee..or PoorTax" as I call it..

So whats a person to do with little to no options? or are there options I have yet to find?

Oh, and not a deadbeat, was in an accident a few years ago and get SSI,

any ideas would be cool.

Originally posted by RogerT

Originally posted by EarthCitizen07

That would be ok if you already had a house, car and boat to begin with.

Boat???

Do you live in Venice? (Italy for some of the US folks!)

Life is not just about the needs, it is also about the wants.

Where I live is irrellevant to our discussion and have no reason to reveal to you or anyone else.

Originally posted by PrimePorkchop
the even bigger story is why so many people chose to bank with those huge banks anyways? I've always been with my small local bank. I chose, right from the start, to support all local businesses whenever any need they could meet had risen.

And I know a lot of my friends who do the exact same thing.

It's not the banks fault they are as big as they are. It's your fault for banking there in the first place.

edit on 6-11-2011 by PrimePorkchop because: (no reason given)

Yeah seriously.. Guess all the advertising and bull$pit 'rewards' systems work on our fluoridated, child-like population.

But in reality.. let's not forget that these 4 mega-banks used to be lots more (somewhat) smaller banks. So as is the case with me, and I assume a good amount of other people.. we didn't open an account with Chase, or Bank of America, or whatever, but at some point in the last decade, whatever bank we did open with got bought out

Originally posted by EarthCitizen07

Originally posted by RogerT

Originally posted by EarthCitizen07

That would be ok if you already had a house, car and boat to begin with.

Boat???

Do you live in Venice? (Italy for some of the US folks!)

Life is not just about the needs, it is also about the wants.

Where I live is irrellevant to our discussion and have no reason to reveal to you or anyone else.

No worries bro'. If you want a car, boat and a house more power to you. Personally, I think all of these should be readily available to every human on the planet who wants one, for free.

The monetary system merely makes sure only a privileged few can aspire to possess such luxuries - we should throw it out and start over

reply to post by bacci0909

But in reality.. let's not forget that these 4 mega-banks used to be lots more (somewhat) smaller banks. So as is the case with me, and I assume a good amount of other people.. we didn't open an account with Chase, or Bank of America, or whatever, but at some point in the last decade, whatever bank we did open with got bought out

that's passing the buck.

You chose to stay with the new bank. When our credit card bank got bought out by Chase, we paid off our balance in full then canceled our card.
If you choose to bank or have accounts with big banks, you can't blame it on anyone or anything but yourself.

reply to post by bluemirage5


There was a clarification for that zerohedge announcement, see the update here:
www.abovetopsecret.com...

Originally posted by PrimePorkchop
reply to post by bacci0909

 

But in reality.. let's not forget that these 4 mega-banks used to be lots more (somewhat) smaller banks. So as is the case with me, and I assume a good amount of other people.. we didn't open an account with Chase, or Bank of America, or whatever, but at some point in the last decade, whatever bank we did open with got bought out

that's passing the buck.

You chose to stay with the new bank. When our credit card bank got bought out by Chase, we paid off our balance in full then canceled our card.
If you choose to bank or have accounts with big banks, you can't blame it on anyone or anything but yourself.

edit on 6-11-2011 by PrimePorkchop because: (no reason given)

I agree.. not trying to pass the buck, you just seemed genuinely curious as to why so many people have accounts with the big banks in the first place. Was just offering one viable, as well as my own personal, explanation

reply to post by duhdiggitydan


BofA alone has over 57 million accounts. Does anyone actually believe 70 thousand closures are going to make any difference?
It would be symbolic at best which won't make any difference to big banks.

Originally posted by NKAWTG
reply to post by duhdiggitydan

 

BofA alone has over 57 million accounts. Does anyone actually believe 70 thousand closures are going to make any difference?
It would be symbolic at best which won't make any difference to big banks.

Once again someone doesn't read the thread before posting.
the thread title is
Stunning Number: Big Banks set to lose 70,000 accounts TODAY!!!

so 57,000,000 accounts divided by 70,000(leaving) per day is 814 so You tell me that the banks aren't going to notice a trend that could leave them with 0 accounts in 2 years and 2 months if it keeps up.

57,000,000 divided by the 1,000,000 accounts that left in the month of October leaves them 57 months before they have 0 accounts.

Granted this would depend on ALL the accounts that were moved being removed from BoA alone but still it's a lot more significant than everyone is giving it credit for.

No matter what the initial move accomplishes it will cost the banks revenue that they will have to recoup by raising fees on their remaining customers, which will cause more to leave and another increase in fees and so on and so forth. It's simply going to become too costly to remain at a large bank if the trend continues. and that I believe was the whole point from the start.

I haven't read all of the replies yet, but according to ABC News 1 million american consumers moved their money out of big banks. That's a bit more than 70k or 650k.

source:

reply to post by NKAWTG

Exactly. As I stated earlier, for every small consumer account that does get transferred from a mega-bank to a credit union, there is a rapidly growing corporation that is ultimately moving their business banking relationship to a mega-bank simply because the mega-banks have the bank products, services, and personnel to better manage the relationship.

Simply put, the mega-corporations bank with the mega-banks. Think about it. If you're a mammoth business, and need to open an international Letter of Credit for your client in Venezuela, or you need to send recurring wire transfers to Western Europe, or you need a $50 million loan for a new manufacturing facility, where are you going to go? Certainly not a credit union. They won't have a clue. No, you need a mega-bank with all the sophisticated treasury, lending, and deposit services that mega-banks offer.

If you are a small fry consumer, you belong at a credit union. You don't need sophisticated banking services, and you generate little if any profit to your financial provider of choice.

Few big businesses are going to move their business banking relationship to a credit union. That's where the big bucks are. I am sorry, but your paltry $1,000 that you bring to your credit union -- Even if there are 650,000 of you, won't make one iota of difference.

Because as you move to a credit union, I guarantee you that the mega-banks are courting the next Google and Microsoft.

And, really, who are you hurting when you move your deposits at your local retail bank branch? You jeopardize the livelihoods of the tellers, the personal bankers, and the branch manager, all of whom earn a modest income at best, and all of whom are local residents in your community. They might lose their jobs, and their livelihoods.

You will have no impact on the corporate senior executives who are already worth millions.