Why have the banks been given all of this money from the government and then mak

1. 55

   AlainMposted 15 years ago

   Why have the banks been given all of this money from the government and then making it so...
   
   difficult on homeowners to remod their loan?

   replyreport
2. 67

   SaiKitposted 14 years ago

   my hub "why buy gold" has touched on this question significantly,
   
   Basically the financial meltdown and corporations failures were result of government coerce the lenders such as Fannie Mae to "lend to the poor" because they weren't supposed to "discriminate the poor"
   
   As a result, a lot of people who weren't qualified for loans were able to borrow their ways to buy real estate, thus resulting in real estate bubbles because there seemed to be so much demands for real estates while in fact the money is borrowed money, not earned money. Then the real estates bubble burst when so many people couldn't pay back their loans (subprime mortgage, bad mortgage that were so hot earlier) and so much wealth evaporated, and the lenders got into troubles, and the government pointed her fingers to them and says "you filthy, greedy, capitalist"...
   
   So the banks learned their lessons and they were so afraid to repeat the "forced" mistake they have made earlier because the Clinton government forced their hands.
   
   On the other hand, the money was controlled by the Federal Reserve System, which is a PRIVATE institution in the business of making profits by charging interest from the money it lends to the government. The government pays the interest with your tax money. Now your great grand children who is yet unborn now owe the FEDS money, and thus the bosses behind FEDS, who are foreign super bankers, now own your great grand kids, in a sense.
   
   Where is the money come from? They just print the US dollar bill based on demand. When the government decide to overspend, they print the money, and earn interest for it.
   
   The stimulus package distribute money based on what the Feds think it should be distribute, so they distribute the money that is Prepaid by your great grand children to the banks, who are their buddies... because they are TOO BIG to fail..
   
   So is that good for your question?

   replyreport