‘Too Big To Fail’ Worse Now Than Ever
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August 13-14
August 14, 2013
It’s incomprehensible that there be such a gross lack of personal integrity in our society. Those people lacking scruples who pull the strings and insult the intelligence of humanity with their propaganda, arrogance, and insatiable greed, intentionally deceiving people for financial gain, inflicting pain and suffering upon so many, should be held accountable under RICO and all those assets we hear about siezed , as they should to get a grip on this rampant organized crime and corruption.
Is responsible for the subprime proliferation.. and guess what, stepped right in to pick up the slack of the failed sub prime loan the SECOND it went away. What you guys are doing is picking through all of the political BS swarming around Washington that sounds good for the moment, and solely meant to protect the absurd and blatant repetitive failures of Washington. And let’s be honest, where did this FHA money funnel to when they exited the market and made way for sub prime.. oh the banking industry, hence through the banking lobbyist. Wait, is it all absurdly clear what you sort through the BS?
Good point on the FHA. Don’t forget the broker approval process for being able to originate FHA. I know I am not willing to jump through all of the ridiculous hoops it requires so therefore, chose to originate sub-prime loans. These loans are virtually identical with the exception of term. Just think, if all of those sub-prime ARM loans woudl have been FHA fixed rate loans, we would not have nearly half the mess we have now as many borrowers payments would not have increased thus creating the financial hardship.
Typicall government process stuff, makes is rediculously hard to get approved to do FHA for reasons unknown and the intelligent broker will look elsewhere for other solutions. Why would I chose to take on the additional expense for a FHA approval when I could get approved to do Sub-prime loans for no cost?
This was the heart of the problem of the mortgage meltdown. And now the FHA loans are saving the market….crazy…..
Banks! Banks! We don’t need no stinkin banks!
The GAO has our back. Vegas baby!
• When you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal, not in goods, but in favors; when you see that men get rich more easily by graft than by work, and your laws no longer protect you against them but protect them against you…you may know that your society is doomed. ~Ayn Rand
I agree! I have been avoiding the major banks for years. Personally my checking/savings accounts are now with a credit union
To control a country or company or a person, control their DEBT.
One of the ways this administration and guys like Cuomo have enabled banks to become bigger and more profitable is through the use of subsidary appraisal management companies. In fact, the next time one of those AMCs that I don’t like and never accept work from offers me some ridiculus fee, I’m going to surprise them with my new hourly rate fee schedule. You know, just to get their reaction. Wait a minute! This almost makes sense!
Right on the mark Steve! The layering of the tax code over decades, which now allows for more than 50% of WORKERS to pay NO income tax (and some to actually receive \refunds\) while less than 10% of income earners pays over 70% of the federal taxes – yet is branded as not paying their \fair share\ – will eventually lead to the fracturing of our country into many pieces just like what happened to the Soviet Union.
Read the book “Web of Debt” by Ellen Hodgson Brown. It is a real eye opener about how the banks control the Fed and not the other way around. Did you know the Fed is a private company formed by the banks? They can create money out of thin air by issuing Treasury bonds and then buy them back from the banks when they can’t sell the entire issuance which creates an asset on the banks balance sheet which then enables the bank to lend on it. That is because they can inflate that “asset”g by 90% because of the liquidity requirement.
Evil only exists when and where good men do nothing. We have no one to blame for our current situation except ourselves. Everyone complains but no one is willing to do anything about it…. except complain.
Duh! Are you just now figuring out that we are being manipulated into a one world monopoly by the banks by the congress? What do you think the last 30 plus years have been about? What do you think the Savings and loan mess in the 80s was all about?
Yet the amazing thing is most folks just think things are just fine and that there is nothing out of the normal at play here and that there is no conspiracy (god forbid we talk about that) to take our country down. WAKE UP!!!
The amazing thing is that free enterprise does work well enough to figure out a way around problems. That is of course until they pass a new law that out laws the little guy but exempts the too big to fail group and lets us be swallowed up the hungry dogs once again.
One just really gets the sense that it is of no use to try anymore. It is like playing against a stacked deck at a card table.
Let’s end the lobbies and the power taking and take our country back. Or shall we just look to the Government for yet another wonderful loan program to satisfy our present whims? I for one am very tired of the B.S.!
P.S. How many hours did you waist compiling your data to figure out your income tax return this year? Then on top of that you probably had to hire an accountant to file it for you. Right? Why? Wouldn’t it be nice to take your whole pay check home every week and not to have to do that at all, ever again?
For God and Country Go Fair Tax.
The bigger the banks, drug companies and oil companies get the bigger the lobby power…and we all know that government officials aren’t at all influenced by the power of the almighty buck…cough, cough… I don’t see a way of fixing this problem unless we make it illegal for these banking forces to lobby. Take away the money and you take away their power.
Loanergirl
It is not even Lobbying anymore. Big Banks ability to directly bribe the elected officials to get whatever they want is in my opinion one of the largest threats to our entire economy. Solution do not conduct business with them. Keep your Checking/Savings Local. Obtain a mortgage from a local mortgage broker or loan officer that you can actually meet in person. Quit feeding the beast.
The only way to rein in TBTF today is to (1) leave them as Helen states above, and (2) ask your Senators/Congressmen to enforce Dodd Frank’s Volcker Rule and other regulations associated with it to limit their gambling. Thank you TBWS for bringing this topic up as banks continue to make great profits and their CEO’s continue to make million dollar salaries while the rest of America struggles to keep a job and a home if they still have one. For those who are now renting and have trashed their credit (some for NO FAULT of thier own if they lost their job in this scandal), use your voice. TBTF needs to be reined in. For those who think it won’t or cant’ happen, shame on you for doing nothing.
Not only can FHA be blamed for the popularity of sub-prime loans back in the day, FHA is a sub-prime loan! Where else can a borrower with bad credit and no down payment go get a loan? NOWHERE BUT FHA!
let’s go with this too big to fail idea for a few minutes and say we chop some of our big guys down to size. if none of our banks can compete with the huge banking monsters overseas, what then?
big banks aren’t bad, politicians are for letting banks buy them.
I would say stated income loans pushed FHA out of the game a bit because they made the prices shoot up so much that most people couldn’t qualify full doc for the house they really wanted.
I don’t know if I agree that FHA was responsible for the subprime mess, but they are responsible for the unpopularity of the loan for a long time. When I first started in Real Estate they had fallen out of favor because the criteria for the home had gotten so strict that only a new home could meet that criteria. The costs to the seller were high as well. That is when conventional loans stepped in to take the place of the FHA or VA Loans because they were actually easier for the buyer to obtain and there weren’t so many restrictions on the home itself. Sellers flat out refused to consider FHA during those times because they would need to practically rebuild their homes in order to sell them.
Then during the boom years the loan limits were too low for many homes to qualify, especially in rural areas like mine. Then you add in the restriction that they can only be used for primary homes and that eliminates most buyers in my market since it is a resort/second home market.
We are seeing them return some in our area but on a very limited scale.
As for the Banks too big to fail, they have been in control of the world poltics for a very long time. That isn’t about to change.
I am amazed how in this country people use phrases such as hey take the money…but the word corruption is not used often to describe the situation. To my opinion, the Federal Government’s agencies are plunging into massive corruption under our current administration. I call it corruption, when they either knowingly take money, or officials look the other way, knowing economy is going South, and what they have done is not working for the American People.
As Bob Dylan said: How many years a man can pretend he does not see? Well; thru the upcoming election, it hopefully will not be for four more years!
Look at the $100 down payment program offer ONLY for HUD properties that the buyer pays full price or better. Normal work orders are overlooked a lot of the time. They are exempt from CIC rules and any other state or city/county rules as well…..HMMMM. Now that’s too big to fail!
I think you are really stretching the truth to blame FHA for subprime lending. Subprime expanded due to banks & loan officers greed. FHA products where available for a lot of the qualified buyers. But why take the time to document everything when you can do three loans at the same time by no-doc loans. FHA is not perfect but they are not responsible for subprime disaster. If anything they where in direct competition with subprime.
The Too Big To Fail was always a joke but the government actually helped make things worse with mingling public monies with private business. Our tax dollars had no business going to the big banks and we certainly got nothing in return for our money. This happened in part during the Great Depression and it didn’t work then, either.
I took all my money out of BOA and moved it to a credit union. I moved my business accounts from Wells and moved them to a bank associated with a brokerage firm so I could have the same services Wells offered but with a smaller company that isn’t responsible for the mess we are in right now.
I refid my mortgage with the credit union from Citi. The rate is still great, the service is personable, and I don’t have to deal with outsourced personnel when I have a question. I walk in a branch and talk it out with someone I can understand.
Folks, the only way to put these banks in their place is to stop patronizing them on a grand scale. I get it from a loan officer’s perspective – you have to make a living. BUT loan officers made a living 15 years ago when the top 5 weren’t so big that their failing was compared to the end of the world as we know it. In fact, 15 years ago when I started selling real estate, I hadn’t seen many loans involving the Big 5. Most were brokers who sold the loans to smaller banks. When I started appraising 10 years ago, I didn’t get much from teh Big 5. Most everything was from smaller lenders all over the country and S&L’s and credit unions locally.
We let them get overbearing. Time to turn the tide.
Using Dick Durbin’s comment is laughable. He ‘s the at the head of the line causing problems.
Let’s look at “Too Big to Fail” in the mortgage arena. What market share does Wells Fargo have since Citi, Chase,and BoA were forced to pull out of the secondary market? What would happen if they and perhaps a few other of the remaining key players pulled out of secondary? I doubt that the remaining small players would have the capital to absorb the volume that Wells had previously purchased. The entire system would collapse.
Brian looks like he should be cutting the roast beef at Sunday brunch today… ha! “Would you like some creamy horseradish, sir?”
When 4 banks swallow up 8 banks 4 banks get bigger. Who didn’t do the math on this four years ago? This is what we get for idolizing our financial markets. The bailouts were gonna cause inflation, weaken the dollar and what else….? Oh yeh, the banks… we need them to prop up our economy. And with all the wringing of hands wondering how we’re going to pay for it all… turns out taxpayer on the hook will end up in the black after all. We’d all but forgotten that we ‘profited’ from the S&L crisis as well. sheez, the things we complain and worry about that never even happen…
anyway, the difference then was there was swift prosecution.
Take a walk down memory lane here
http://neweconomicperspectives.org/2012/04/the-silver-anniversary-of-the-keating-five-meeting-citizens-uniteds-precursor.html