So When Will Banks Give Loans?

So When Will Banks Give Loans?

www.nytimes.com

Given the way, that is, that Treasury Secretary Henry M. Paulson Jr. had decided to use the first installment of the $700 billion bailout money to recapitalize banks instead of buying up their toxic securities, which he had then sold to Congress and the American people as the best and fastest way to get the banks to start making loans again, and help prevent this recession from getting much, much worse.

In point of fact, the dirty little secret of the banking industry is that it has no intention of using the money to make new loans.

(visit the link for the full news article)



Related AboveTopSecret.com Discussion Threads:
FED: U.S. Dollar COLLAPSE!!
Bailed-Out but Still Giving Bonuses

How's that for sticking it to the taxpayer!

To Wall Street this is nothing more than a big Christmas present. What it seems like they are planning on doing now is expanding their own businesses by acquiring other businesses, they see this as THEIR opportunity to buy the other struggling banks that didn't get any of the bailout.

So basically, don't expect the banks to be doing a whole lot to help the people out.

Unreal!

www.nytimes.com
(visit the link for the full news article)

[edit on 10/28/2008 by Keyhole]

Here's a little more from the "source" of the article:

So When Will Banks Give Loans?

In point of fact, the dirty little secret of the banking industry is that it has no intention of using the money to make new loans. But this executive was the first insider who’s been indiscreet enough to say it within earshot of a journalist.

(He didn’t mean to, of course, but I obtained the call-in number and listened to a recording.)

“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. 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 and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”

This money should be taken away from these companies!

[edit on 10/28/2008 by Keyhole]

Disgusting isnt it? It makes you want to take a trip to Wall Street and well ... you get the picture. Our government has been Hijacked. Until the people wake up and march on Washington nothing will change.

When will people realize that a coup has taken place on Oct 1st? (The bailout scam)

Sorry to break the bubble but it's true and this piece news over here from OP really shows us that.

People need to understand -once and for all- that if you give money to rich people they will NOT share the money, SPECIALLY if they are in "trouble" (real or fake)....

Then you'll say: "oh but lending money is not sharing..."

Right, if you had a billion dollars, would you mind lending to others or would you first make DAMN SURE your assets are secured, your 15th house is bought, your boat is fueled and your gold mine protected?


Think about it.


Peace

ok .. first off. consumer confidence is at a all time LOW~! based upon this link

Consumer confidence plunges to LOWEST on RECORD


which is in the SAME page as

White House to banks: Start lending money

Now, think about it what JUST happen last week. Dow tank'n HUGELY, gold is sinking, the US $ is trying to hit the brakes hard but burning the pads out on a daily bases!!

consumers DO NOT have the confidence to spend anything LET ALONE going to skip down to the bank and yank out a loan for 300k WITH 20% down !!!

how are the banks suppose to LOAN any money when there's no confidence in the market ........PERIOD!

It's like this.. 'ok now that I've paid my 100k, (that's with 35% interest mind you, I'm going to go back to the the loan sharks and get 250k!! in which I should ONLY have to pay them 400k"

Th gov is making it sound like the BANKS are the bad guys now ?? LOL .. wow what a spin that is!!!

From what' I've read yesterday, the banks did NOT have any reserve to LOAN .. that is why they need to be bailed out... and all the money they got was just to cover the defunct loans NOT to replenish their reserves .. wow..

all i can say is ..

WOW>> LOL

I already have a thread on the topic but I will add to this one that the bail out has not been used for what it was intended, Paulson is rewarding his cronies and investing in the biggest and wealthiest banks while the toxic mortgage defaults papers are been ignored.

That is why local banks can not loan to people they are still stuck with the mortgage trash while the biggest banks are trying to buy them out.

Nothing but consolidation of financial institutions for the few.

Originally posted by Komodo

From what' I've read yesterday, the banks did NOT have any reserve to LOAN .. that is why they need to be bailed out... and all the money they got was just to cover the defunct loans NOT to replenish their reserves .. wow..

This post by anachryon in another thread explains this problem the best.

www.abovetopsecret.com...

This money was suppose to stay in the banks so the banks had reserves when people went to the banks to get money.

Basically, if the banks now buy other companies, that will put this money out in the public and cause hyperinflation.

You'll have to read anachryon's post, he explains it very well!

[edit on 10/28/2008 by Keyhole]

reply to post by marg6043


Exactly Right, 'consolidation' funds for the Nine bank conglomerates,
and guaranteed 'bonuses' ... all come before the loan windows at banks open up for normal business


but the Bonuses should have been paid out in time for when all the commodities sectors are in the bottom of the engineered decline...
so that the insiders with the wealth & bonuses can scoop up the dirt cheap commodities, commodity futures, and gold.

i sorta expect it will be after new years but before easter when the lending windows & credit creation activities get anywhere near decent/semi-normal to those which have 900+ credit ratings & a secure looking employment picture.

i.e. blue coller or below: ... go a-way from my window...leave at your own chosen speed...i'm not the the one you want babe...i'm not the one you need...

Originally posted by mybigunit
Disgusting isnt it? It makes you want to take a trip to Wall Street and well ... you get the picture. Our government has been Hijacked. Until the people wake up and march on Washington nothing will change.

I love the way we the sheeple can use terms like 'Our Government' like when was the last time 'Our Government' didn't use you the sheeple to fund and fight in 'their' wars? Grow up, the NWO Banks run this world and 'our government' are the PR face of it. Oh, but you live in a democratic country, right? Just vote 'Your Government' out!

Originally posted by Keyhole
You'll have to read anachryon's post, he explains it very well!

Thank you, Keyhole....I'm a 'she', though.

If I may - I posted my take on this in the non-news forum in this thread a couple days ago. We have already seen a real world example of these bailout bucks being used to allow the US gov't determine which banks live and which banks die. National City was refused a capital injection; PNC Bank was granted the $ so that they could take over their competitor.

It's sickening.

reply to post by Keyhole


yep .. thx Keyhole!! Couldn't remember who said it and didn't have time to search at lunch.