This is WHY a Revolution is on the Way!

[propertymanager]

As we already know, because of the wild, reckless actions of the big banks selling derivatives that had little to no worth, the big banks were insolvent a year ago.  The government argued that the banks MUST be saved so that lending to Main Street could continue, thereby saving the economy.  As we also know, lending to Main Street has all but stopped (there's a chart in the article/video that demonstrates this very clearly).  However, what was done is that the Fed bought hundreds of billions of dollars of bad assets from the bank - i.e. made their bad debt disappear!  What's even worse, is that the banks can borrow money from the government at zero percent interest and then loan it back to the government, getting paid to do so.  Talk about a ponzi scheme.  This is really nothing more than a direct subsidy from the middle class to the Wall Street FatCats.  I'll take that back, it's not a subsidy - it's the RAPE of the middle class.  Now, here's the kicker, THE GOVERNEMENT'S PLAN TO UNWIND THE STIMULUS IS TO PAY THE BANKS HIGHER INTEREST FOR DOING ABSOLUTELY NOTHING!  Not lending.  Not re-financing loans.  Nothing!  Simply get free money from the government (middle class) and then get paid to loan it back to the government.

From the article:

The idea behind giving the banks cheap money was that the banks would lend it to consumers and businesses.  Unfortunately, that hasn't happened: Since the start of the crisis, bank lending has fallen off a cliff.  The banks are, however, lending to the Federal government, which needs to fund record deficits by borrowing more than $1 trillion a year.  The combination of the Fed's desire to stimulate lending via cheap money and the government's desire to stimulate the economy by running a huge deficit has made it a great time to be a bank: Banks can borrow from the government at artificially cheap rates and then lend the money back to the Federal government at higher rates, pocketing the difference.

And now it's going to get even better to be a bank.

Why?

Because the first part of the Fed's exit plan will reportedly be to increase the amount of interest the Fed pays on "excess reserves."

Here's the article:

http://finance.yahoo.com/tech-ticker/the-fed%27s-%22exit-plan%22-is-just-another-secret-gift-to-wall-street-420443.html%3B_ylt%3DAj.atznAWCArefvuZ8TnHY27YWsA%3B_ylu%3DX3oDMTE2NWxmMjA2BHBvcwMxMQRzZWMDdG9wU3RvcmllcwRzbGsDdGhlZmVkc2V4aXRw?tickers=spy,dia,XLF,qqqq,tlt,uup,%5Egspc&sec=topStories&pos=9&asset=&ccode=

This is an OUTRAGE and another reason that we need a REVOLUTION in this country!  This tyranny can NOT be allowed to stand.

[davewindsor]

Have you seen this video on why it's so hard to get a loan modification instead of the bank throwing a property into short sale or foreclosure?  It takes apart deal where the FDIC took mortgages from Indymac and then sold it to One West Bank.  It's outrageous the way  they describe it.

http://www.mustknowinvesting.com/2010/02/09/the-indymac-slap-in-your-face-you-wont-believe-this/

[rookieNYC]

not to defend the banks but if I was given the same opp I would do just like they are...and so would you mike...

[christopher w]

There is an interesting article a friend forwarded me called "How to make an easy Billion Dollars" and I can tell you right now if I had the opportunity I would be all over it. It takes money to make money and that never seems to change.

[rookieNYC]

Amen to that Chris...I see Mikes rage on this subject though..The Fed was giving the loans out to the banks to lend out to businesses and people and they hoarded it..Thats not right..

These banks couldve made more lending it out so why they didnt is the million dollar question

[christopher w]

The answer to the million dollar question is Risk. There is virtually no risk involved with their current plan. Granted the rewards are obviously not as great but I think right now everyone in the banking industry is playing the CYA game. Nobody wants to be the guy/girl that makes the decision that costs the company money. The CYA game has trickled from the corporate offices all the way down into the lives of the little people. In the past people were given the benefit of the doubt when it came to making some decisions on how to interpret income and/or debt. Not anymore. If you can't prove that you are a credit worthy borrower without a shadow of doubt it is very difficult to get mortgage financing. It's too dangerous to just trust people anymore.

They can just sit back and get fat on their .25% arbitrage on 25 billion. Not to mention the money they make from their trading desks.

[rookieNYC]

True Chris...It turns out to be a plus for us anyway..

Banks dont want any type of loan no matter how collateralized it is..they dont want properties back no matter how much equity the deal has in it..What I would like to know is what will make them start lending again..Lets before real they are compounding this real estate downturn by the lack of funding..

[tatertot]

I can't blame the banks. It's congress' fault for stupidly giving them the money without putting legal restrictions on what they could do with it.

Hey, if congress wants to give me a couple of billion with no restructions on what I can do with it, I'm taking it.

[rookieNYC]

I actually watched a good segment on CNBC of all places today..They had Warren Buffett and Hank Paulson and they interviewed George Soros as well...Surprisingly George Soros was a little more *positive* then I thought he would be..Naturally a former Treasury Secretary like Hank Paulson cannot be bearish even if he thinks negatively...Funny thing was they have Warren Buffett who bailed out Goldman Sachs and you have Hank Paulson who is an ex CEO of Goldman Sachs...Talk about some inside trading talk going on after the cameras were turned off..George Soros did go on record saying that the status of the recovery will be in how long the stimulus money is pulled out from the economy..I was very surprised at how positive Soros was,I was floored to be honest..If anyone knows George Soros he is the perennial Bear,so for him to be anything but bearish was very surprising...

Sometimes you have to read between the lines of these segments also..A guy like George Soros can use the interviews to make people think he is going one way only to reverse course..I dont trust Soros...Also David Tepper who I think has ball$ the size of Texas upped his stake in Citigroup to a whopping %73....We have some interesting times ahead of us...The next few years are going to be eventful..

[propertymanager]

Let's get real here.  ALL this scum is connected to Goldman Sachs:  the treasury secretary, the Fed, the White House - they're all connected to and complicit with GS.  They are perpetrating a theft of unprecedented proportion!  These people have every reason to be bullish - they're STEALING the country blind.  Whatever happens - they've got theirs I(for now)!!!  They should all be in PRISON (or hanging from a pole), but they won't be until after the country collapses and the masses revolt!  I suspect they'll end up just like the Nazi's after WWII - being tried for crimes against humanity!

[rookieNYC]

Mike Im officially worried about you...You are taking this economic stuff too much to heart..

[propertymanager]

The socialists/marxists in Washington D.C. and on Wall Street are DESTROYING THE COUNTRY!  You should be angry too!  I'm wondering when people will wake up and start to care!

[rookieNYC]

To be honest it doesnt bother me at all..I really could care less...Its pointless to get stressed out about things that I cannot do anything about to change..I also disagree with how you feel that the devils on Wall street (especially because Im one of them)...If you were put in a position of power to make serious money you wouldnt turn it down..No one on this forum would..And if they say they would turn down the opp to make life changing money they are LIARS..There are far more mortgage brokers that wrote bad loans to make this country the way it is than just a few firms on Wall street..this is what baffles me about your posts..You constantly take aim at just Wall street like they caused it all..I blame sub prime lenders more than anyone yet I havent seen you mention them in a single post..How come?

[propertymanager]

Actually, I have posted about the subprime lenders and even more about Barney Frank, Chris Dodd, and the congressional black caucus - which all have significant liability in this issue and they belong in prison also!  This subprime fiasco was another disaster brought to the American people via the social engineering of the socialists/marxists (including BUSH!)

[rookieNYC]

out of sheer curiousity is there any politician that you DO like?..