From my understanding with the intricate breakdown of how the banks essentially paid themselves in receiving bailout funds, there are a few still left in the wind in terms of information overload as to how it all broke down. So here is a simplified version of what happened and is happening right now.
Major national banks such as Bank of America or Wells Fargo are all stock holders by law of the Federal Reserve Banks and under their regulation. These same banks that were giving multi-million dollar bonuses to their corporate elite, were also loosely regulated in corporate performance based payout structure by obligations to "stockholders." These are the same banks that lobbied Congress to use tax-payer money to finance the same type back door broker deals they could have done amongst & for themselves to remain financially solvent. Bear in mind it's virtually impossible for banks to misallocate the funds available to them when they are only allowed to keep a certain amount on hand anyway, by way of Federal Reserve regulation. Unless the Fed actually were the ones who instigated and sanctioned it.
1. DOG EAT DOG THE STRONG SURVIVE
Major banks have access to "short term loans" to cover any temporary insufficiencies through the Federal Reserve. Virtually all lenders have in place some type of credit lending insurance that will either fully or partially reimburse lenders on loans defaulted by their clients. The last resort would be to lobby Congress for tax-payer money right? You all know the cut-throat ways of business, the sink or swim mentality. It's a financial food chain either you grow to become viable enough for some larger entity to acquire you or you start off puny, scrawny and never get a chance at life. The strong survive and the weak are prey.
With all that said wherein the motto of most cases we would generally stand back and watch the former giants crumble to usher in a new era of titan. Alternatively we have also witnessed old giants stay strong, achieve steady growth and swallow young budding titans whole. Either way we would watch as some major corporations fell and some merged in buyouts. The large swallow the small. Through all that we have witnessed, we have never witnessed these entities seeking US the average citizen to pay for their mergers, buyouts, bonuses and greed! The question is not why did it happen, it's why did WE let it happen?
2. THE AFTERMATH & EXCUSE
They received the money from the bailout and several of these entities merged any way! Bank of America acquiring Merrill Lynch or CountryWide for example. So what was the difference? Sure it was put in a nice sale package for you....Oh it's to open credit lines back up, avoid market crashes, save jobs and anything else they can throw at you to play on your fear. Your 401k's & IRA's are dropping, funds may be lost above $250,000, toxic assets, I mean the list goes on and on. So back to the question, forget the sales pitch. Think about the difference. What was the difference in them facilitating deals on their own within the ever broad international financial sector versus asking you and me to foot the bill?
Ah hah, ah hah....just asking that sentence to yourself out loud will answer it for you. Reminding of a line I would offer a very inquisitive soul. "Your answer is always in your question."
3. THEIR REMEDY
The answer is actually the biggest slap in the face. They are going to merge, kill the competition, liquidate major assets, acquire larger ones, using OUR hard earned money to do it! They are having me and you pay for them to purchase mass real estate and corporations for pennies on the dollar by way of "self-generated market manipulation."
They over extend credit with fluctuating interest rates, that rise and fall at their request. This one action can affect so many areas of your life from housing bubbles, to purchasing autos or repossession thereof, to stocks, price inflation, increased bankruptcies, liens & foreclosures. You name it and their innocent sounding credit is last to receive the blame.
Once all property value decreases across the board, they can literally grab land in quantity for less than a fourth then they would've paid otherwise! At the same time clamping on credit, denying credit and lowering credit lines for others. Making even concerted efforts to pool money a task easier said than done the average person. As consumer spending falls and confidence in the economy waiver stocks take a plunge, devaluing corporations making them easy to acquire of easy to get rid of. As debt grows inflation is inevitable to cure deficits. Paying homage to the saying, "Everything seems to go up but my pay." Forcing mass bankruptcies and liquidation of assets to once again be handed to the banks!
4. THE RESULT
Every situation is a win, win for them even in the past where it seemed it was an occasional win for us. The primary power you all have RIGHT NOW is to realize the stranglehold they have on society and stop helping them in their advancement.
They have taken YOUR money. Money that you indirectly owe them interest on anyway. Used your money to amass more wealth. Used your money to pay for the debt incurred by these purchases. And will receive a 6% annual return on all the profits made by the banking system through the Federal Reserve. A 6% return on the profit that drove America deeper into debt. That's crazy! Me & U would never see a 6% return on money WE squander. When are we going to stand up and say enough is enough?
Literally these banks got paid 4 times over. Once through their initial squander. Second by the bailouts. Third by the investments & acquisitions made and Fourth by the automatic 6% return from the FED. With all of them being member banks of the FED that meant HUGE profit margins for the FED, all on the backs of the people like YOU & ME!
5. THE SOLUTION:
Go right now and RIP UP all of your credit cards, not until you have maxed them all to their limit. They shouldn't have been dumb enough to give away money anyway. Charge them to the max and don't pay them one filthy red cent. If you have a car with a car note that you love I suggest you keep it. However for those of us that love our car and hate our excessive car notes, stop paying immediately on those and keep your car. Same thing with houses and property, in protest stop paying on your mortgages now. Good luck in them having the resources to repossess every car in the nation, every home. Good luck in them suing every consumer that stiffed them on the whole. We owe it to them, the way they owe it to us.
If you can't join in protest with your home or auto then join in the maxing and cutting off your credit cards. Spread the word to do away with any credit cards and as many relations to banks that we have. Banks are not a necessary part of life. If you all recall the initial idea of banks was that it was safer to keep your money in the bank then under your bed. I don't know about you all but I'm gonna give it a shot under my bed. It can't be any worse.
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