There is a banker in the world. We are living in it

When you see the evening news or hear a political speech shows he feels that the big banks in the United States back all the money borrowed from the Troubled Asset Relief Program (TARP) has been paid to the government of the United States. The media are now saying to the American taxpayer that the government has made a good investment and the total cost just $ 50000000000.
Are these people crazy when they say these things? It 'true that the big banks to repay the TARP funds, butwas with taxpayers 'money'. It 'very important to understand that "not too big banks can borrow more money then they need by the Federal Reserve Bank of zero percent. In essence, this office generates money when necessary. These same banks then go to buy stocks, U.S. Treasury and other high-yield investments. They also operate a highly profitable credit card industry, where they loaded the 16.75 percent average customer. Not a bad deal if youthink about it.
These banks as a customer pays, on average less than one tenth of 1.0 percent of the money is held in a bank savings account. You can then take your money and buy stocks, bonds and other investments that make money on your capital. Hopefully you've noticed that I was not the bank, not a single mention of credit. The loans are only a small part of the business and make the big banks these days is not a loan for the average person. The Bankusually borrow money for a big company such as International Business Machines Corp. (NYSE: IBM) and Microsoft Corp. (NASDAQ: MSFT), these companies serve only as an example.
It should be noted also very important that the "too big to fail banks face less competition. D 'In 2010 there were 157 bank failures in the United States. In 2011 150 will probably be another mistake in the notice the county. Pray that the big banks have also bought a lot of competitors are largerfor pennies on the dollar. JP Morgan Chase & Co. (NYSE: JPM), which is considered the best from the "too big to fail" banks bought the investment bank Bear Stearns Corp. for $ 10.00 per share. Originally the price was only $ 2.00 per share. Later, JP Morgan Chase acquired Washington Mutual for just $ 1.00 per share. Wells Fargo & Co. (NYSE: WFC) purchased Wachovia Corp. for $ 7.00 per share. Bank of America Corp. (NYSE: BAC) bought Countrywide Financial and Merrill Lynch $ 5.00 to $ 27.00 per share.The competition for these banks are simply solved by bankruptcies and consolidation.
Whatever happens, keep all the toxic assets that the bank? The answer to this question is simply nothing. The banks still hold billions of dollars of toxic assets. Some of the toxic mortgages that have pressed for authority to sell Fannie Mae and Freddie Mac, the taxpayer foots the bill for these banks. This "too big for the banks' simply do not write to the toxicAssets are no longer as liabilities under the new FASB accounting rules. You may Enron accounting, up to as they see fit. Must be nice, the rules have changed, whenever you need it.
The last point to be made of this is the way in which banks are now charging fees on nearly every service, depending on the amount to keep their use. Many people simply start their money under the mattress, banks continue to bully customers. And 'badenough that people can not even have a savings account with interest their money. Well, now you can see there's a banker in the world and we are just living in it.


Nicholas Santiago
InTheMoneyStocks.com

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