Banks Failing? Throw a Party!

[Nostalgia]

An old expression goes “What goes around comes around.” Finally the misery of the banks has come around to bite them in the butt. And it’s about time.

Most people looking for a personal loan or even a business loan will sooner or later learn in life the hard, cold fact about banks. It’s quite simple: Banks loan money to people that do not need it. Ask any businessman and he’ll tell you this, or any homeowner who wants money for simple home improvements. More people have shared their bank storied with me than I can count. Even your first born may not be enough.

I know a kind and credible elderly lady who was late making a payment one month on a loan with her bank which she had a checking account with. This was in the 1980’s. What did the bank do to her? They took the money from her account without telling her, except by mail. During that time a number of checks bounced when the chain reaction kicked in from the fees and overdrafts, which cost her even more trouble. Sure it wasn’t legal, but that didn’t stop the bank.

Banks everywhere are filled with men and women officers and tellers wearing “conservative” dark suits. This presents a dramatic convincing image of “honesty and integrity.” To me these people are nothing but performers and pencil pushers, who are finally “getting theirs.” What’s unfortunate is that innocent depositors always get the shaft all the way to the bitter end, until the key in the door is turned for the last time.

In 1982 we were building our home (the hard way with saws and hammers, not a contractor) employing something almost unknown today, called “sweat equity.” I walked into a local bank in my home town needing several thousand dollars to drill a well and install a septic system. Those are two things you simply cannot do with a hammer or shovel when winter is two months away - especially when a 2,400 gallon septic tank made of concrete must be installed.

I went to the branch manager and told him what I needed. I asked him about interest, payments and other terms. I took the afternoon off expecting to fill out numerous forms. To my surprise I signed one form, he gave me the numbers, stood up, shook my hand and said “Come back in the morning and I’ll have a check for you.” And he did exactly that, it was ready the next morning.

Today immaculate credit, 4 pints of blood and your first born probably wouldn’t be enough to make a banker happy. You’ll only get the loan if you really don’t need it, or if you have an equal amount or greater on deposit (in which case you still don’t need the loan)…all with the same bank of course.

If I knew back then what I knew today however, I wouldn’t have asked for the loan but found some other way to do those things, such as save up the money or perhaps do a trade of engineering or software services with the contractors. But hindsight is always better than foresight.

There’s an ugly picture in the rear view mirror when you look back and see the endless greed that has become rampant in the “banking system” world-wide. It should be called the bankshit-system instead, because that’s what most people get who expect a loan from their bank, no matter how long they have been a customer.

“WE LOAN MONEY BUT WE DON’T LOAN MONEY”

I know respected several business people that went into a bank with excellent credit, a great income and good collateral. Every bank must answer for every loan they turn down. A bank’s standard operating procedure to get out of this is to blame the person or business applying for the loan. That makes the customer to blame for the loan never being finalized.

Consider someone who is well qualified credit and income-wise and with more than enough equity. They want a loan, but the bank for their secret reasons or internal policies doesn’t want to loan that particular customer or business money. How can a bank get out of finalizing the deal? So how is this trick accomplished, and can they get away with it?

They use a simple trick which has been done to countless average individuals and even the rich, all the way up to British multi-billionaires like Robert Cooper (Cooper Tools, Cooper Weller, Cooper Tires, Cooper-Price-Waterhouse, etc...) Cooper was orchestrating the biggest platinum deal in history back in the 1990s. (I wrote about that in detail in an earlier essay several years ago.) The Swiss did the same trick to Cooper over and over for several years in a row, in an effort to prevent 10,000 tons of platinum from changing hands. At that time platinum was about $650.00/ounce.

The Platinum Cooper was buying was owned at the time by just one man in Hong-Kong. And you thought Gates was rich. It wasn't the bank's platinum to hang on to - but it did represent about 33%of the bank's assetts. And the Swiss probably had already used it for loans and didn't want to part with it.

At one point, Cooper picked up a chair in a fit of frustration, and threw it violently across the room (too bad he missed the banker.) And the bank’s strategy worked when he finally gave up some five years later. I know about this, because there was just one person between me and Cooper – and he was the person who arranged the deal and would get a commission for it. And about the Swiss bank? It has over THREE TRILLION DOLLARS in assetts.

I also know two credible, respected local businessmen. It was a national bank that did this trick to them, not a small town bank.

So how does the trick work? You might call it the “We Need More Paperwork” scam. You fill out the required forms and submit them to the bank. But then you won’t hear anything from the bank. When you call them to find out, they will tell you must submit another form, statement, permit or some other document or declaration is required. After that’s submitted, you wait some more and hear nothing, so you call them.

Then they tell you another document is required. This can drag on from days to weeks to months to years. Why? The entire idea is to get YOU to give up on the loan, not them. That way they cannot say they denied you money when they get you to be unqualified.

And while all this is going on… television, radio and newspaper ads are running everywhere to tell the world they want loan money! There are probably window banners in the bank or even outside to tell the community and passers-by how low their rates are and that a “loan sale” is underway. When you see the sign or advertisements you should be asking yourself, who do they want to loan money to? If the television or radio ads feature African Americans or Hispanic actors, that’s probably a subtle message as to who the bank’s desired customers really are. And these people get the message, too.

If you or I ever did any kind of a scam, we would be nailed in a minute and probably charged under the RICO act and be sent down the river. But banks do it everyday and nothing happens. There is a reason for it.

All this reminds me of the tube worm which lives several miles down at the ocean floor near a volcanic vent. At pressures of several thousands pounds per square inch, these worms that reach several feet long about an inch in diameter have no trouble breeding, growing and thriving. This is because the pressures inside the filter-feeding creature and all the wildlife down there are the same as those outside.

Do you see the analogy of the banks, and their relation to you and I? We have had these scum sucking, bottom dwelling creatures in our life, throughout all of our lives. We have been admonished by our parents when we were children, “Put your money in the bank son, where it will grow and accumulate interest. That’s the smart thing to do son. Save it for a rainy day.” Apparently our parents had forgotten all the cold, hard lessons of the crash of 1929 – when people were jumping out of high rise buildings when the markets crashed and banks failed.

I did not shed a tear when over-inflated real estate prices descended from the stratosphere back down to reality. Nor was a tear shed for bastard, greedy realtors who are now suffering the rewards of their greed. The story is all too familiar. A hard working, middle class couple sits down at home in their apartment and carefully figures out what they can afford for a house payment on a mortgage. This is the first step, and will most likely be the only step they do right. Forces will come into play they never expected.

Mistake #1: The couple calls a “recommended realtor from a friend” to look for a home. The realtor talks to them, looks over the numbers. First they are shown homes in their price range. But there is always “more” and “other homes” they can look at. Sooner than later, the greed factor sets in. What if one of the spouses loses their income and they still must make payments? They don’t even give that a thought.

Mistake #2: They decide on which home to buy which is often twice the monthly payment they planned on.

Mistake #3: The couple signs the purchase offer papers and applies for a mortgage, while putting down money as a deposit. All of it done under great pressure from a realtor.

Once the mortgage is approved and the closing takes place, they have effectively screwed themselves for the next 30 years. But their home comes as an empty box, often not even with appliances. This sets them up for mistake #4 to follow.

Mistake #4: Will the couple go out and buy a refrigerator that works for $40.00? No. Once the yuppy mentality sets in, they must have a new refrigerator. And that goes for everything, including the stove, washer, dryer, furniture, etc… This sets them up for mistake #5 below. (My wife and I bought used when we started out, and that included everything and I’m not ashamed to say it. We never had payments nor want any. And we’re not jewish either.)

Mistake #5: There are the “things they must have” to decorate and furnish their new home (usually this is something declared by the wife to her hen-pecked husband.) So out comes all the credit cards they earned while living in an apartment which are quickly expended to their limits. But still that isn’t enough. More “things” are needed.

Mistake #6: Do you think the couple learned anything from their past FIVE mistakes? There’s always a greedy bank or credit card company that will transfer their balances and extend them even more credit (a longer rope to hang themselves.) And sooner or later, down goes their credit to the bottom like a scuttled ship. Credit cards are nothing more than legalized loan shark money but few people see it coming. It’s not all that different than adding one straw at a time to a camel’s back. Sooner or later, something has to give.

There are those that will say “Twietmeyer, you’ve got it all wrong.” They should go talk to a young newly married couple living in a pointless 2,400 square ft. home they really don’t need. Go see how many people have been down Mistake Road. The realtor walks away laughing (all the way to the bank) with a sizeable commission (their reward for greed and using clever techniques to get the couple to purchase more than they can really afford.) And the couple will pay interest on that commission the realtor earned for screwing them, for the next thirty years!

And where do the banks fit into all this? They are the bastards that financed the home with fiat money and put the couple in debt in the first place! When mortgage papers are signed at closing… money is actually created out of thin air and doesn’t even exist.

To add insult to injury, the couple will be paying their hard earned money (that is, if their jobs hold out long enough in this economy) to a bank for funds that never really changed hands.

And all of it was done on paper.

Throw a party that thousands of banks everywhere are finally getting payback!

Rejoice! For the first time since 1929 (79 years) banks are finally going to get theirs for all the countless misery they have helped to inflict on everyone.



Ted Twietmeyer

http://data4science.net/essays.php?EssayID=843

The real crooks- the Bankers, the Hedge- Funds, speculators and short-sellers- have made their killing already. Banks are me and you. We have to get hold of *them* and take it back!

Make them pay!