Banks getting free money and broadening their profit margin
Well folks, it is time to discuss something other than home drainage for a moment. Man cannot live on home drainage alone, a wise scholar once said. I forget who that was at the moment however.
We have heard so much about how the Federal Reserve is the friend of the economy, the citizens, and the banks, right? Well, guess what is happening.
The banks have been able to get money cheaper from the federal reserve at around 2%, as of late, under the auspicious of helping to solve the mortgage problem caused by sub-prime lending. The banks are supposed to be helping with a home market steeped in lingering deflated home prices. The banks would like to tell us that they are proactive in conjunction with the federal reserve to help reduce the staggering home inventory. Interest rates on 30 year fixed rate mortgages are still around 6% however, while the banks have broadened their profit margin, increased their fees, and are fattening up.
The U.S. public is being conned into thinking that the banks are getting cheap money to help U.S. citizens, and home sellers in particular, reduce the large existing home inventory, which is the largest inventory of unsold homes in 23 years according to Bloomberg financial news.
While home drainage problems are causing some Portland, Oregon homeowners problems while marketing their homes, we are not one of the worse off home markets in the nation.
It is obvious to me that the banks, the federal government, and federal reserve are the only ones benefiting from the whole game, as always. The manufacturing sector, who markets abroad, is slamming stuffed with cash right now, as everything exported to the rest of the world is dirt cheap in American dollars, as the dollar falls against foreign money. In other words it takes less of their money to buy our products because of the exchange rate difference.
These manufactures, and top level world market companies are the same people who the Bush administration gave huge tax breaks to as well, in preparation for this reaping. The value of everything coming into the U.S. is skyrocketing as the dollar falls in value against world currencys everywhere.
When the banks and mega brokers mess up, the fed bails them out. When consumers are lead down the garden path with new loan scams, causing the real estate bubble that must eventually occur, the consumer is the bad guy, and is hung out to dry. All that time, the banks were collecting big fees on sub-prime mortgages.
The supposed reckless homeowner gets stuck holding the bag as always, as the banking cartel, lead by the federal reserve, rolls a new scam in place, and protects their boys at the top.
There is always money to bail out a major player like Bear Stearns, but to hell with the little guy consumer citizen. When will the U.S. wake up to the hype of the federal reserve mandate? What a joke. Money for nothing, printed out of thin air.
The world is starting to get even with the U.S. though. This endless printing of money is largely at fault, as oil is indexed in dollars. The Japanese, India, and Chinese consumers are not paying what we are paying for gas because of the exchange rate. Gas is still relatively cheap to India, China, Japan, and other countries. Commodities are indexed in dollars as well.
The dollar falls in value as the federal reserve keeps printing more funny money. It used to be that the federal reserve issued a report called the M-3 report. It told the rest of the world how much money the federal reserve was actually printing into circulation. The rest of the world then had some clue as how to deal with it, with respect to valuation standards against the dollar.
Since the Bush administration has taken control of everything, the M-3 is history. The rest of the world no longer needs to know anything about the subject is apparently the mantra being spun. This approach to establishing a new world order, has opened a real pandoras box.
So, the United States is getting it every which way now, as the federal reserve plays it’s game with the stock market, and the options market as well. Massive funds invest billions, and swing the markets hard from side to side, destroying the small investor and the average consumers ability to even function within the markets anymore.
As world investors feel that nothing can be known with respect to the valuation of the dollar, the world quits buying U.S. bonds and dollars. The big investor play becomes food, foreign currency, gold, and gold futures, commodities, and commodities futures, oil, and oil futures, and in short, only the ones that have mega money to get in the game win.
Even the stupid notion that we can turn corn land into producing low mile per gallon ethanol is blowing up the prices of all grains and farm products, creating world wide hunger in parts of the third world.
Criminal and stupid. Ethanol is worse than oil, and costs more than it gives in the creation of a clean environment. These are documented facts.
As everyone starts buying oil, food, and gold futures, the price of these items rise, and just keeps rising. As prices keep rising, more money is flushed into the products and companies that produce them as well, and greed sets into the futures market, which further makes the price of everything go up more. Get the picture?
The prices are being artificially inflated by all those things at the same time.
The eventual goal seems to drive the dollar in the toilet, and force the United States into joining in a one world currency. Watch your back America.