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6 Reasons to Stop Trusting Banks

6 Reasons to Stop Trusting Banks

Recently, the Federal Reserve has been allocating $40 million each month to help lower mortgage rates, according to the Washington Post. With this money, the U.S. government is hoping that the banks will grant loans at lower rates to boost the housing market. It’s a great plan… unless the banks decided not to modify the loan rates and keep most of the money for itself anyway, which is exactly what they’re doing, despite already making record profits as of late.

For crying out loud! It seems like nearly every day we learn of new reasons to despise the big banks, and yet we continue to do business with them anyway. Here are 6 reasons we need to abandon all trust in the banks.

1. They flat out admit it: they’re only interested in profit

In the aforementioned article, Wells Fargo CFO Timothy Sloan is quoted as saying that banks don’t make decisions based on whether they will help people but “from a profit standpoint… we run the business based on profitability.” Since that’s the case, why does the government keep aiding the banks rather than the people? When we give them massive financial incentives in the hope that they will pass those along to the consumers and they pad their pockets with the money instead, it’s time to quit trying to negotiate with them and hope they do the right thing eventually.

2. They are responsible for a ton of shady foreclosures

We already know they actively aren’t doing the ethical thing. Five of the country’s largest banks have been fingered for extravagantly fraudulent foreclosure practices. Though the banks largely get away with essentially stealing homes from American families, even when they are subject to punishments, the resulting reforms are minor and the fines pale in comparison to the profits that were earned through the illegal practices. It’s hardly the discouragement necessary to convince banks to act any differently.

3.They’re in bed with lawmakers

The government may not wield the authority to control the banks as reason #1 points out, but the banks certainly have the finances to control the government. What do you think they’re spending some of those immense profits on? Creating Super PACs to support candidates who will eliminate regulation on banks? Check. Using federal bailout money toward lobbyists to convince politicians to not hold banks accountable for that same bailout money? Again, check. Funding efforts to disenfranchise the poor by heading some states’ voter ID movements? Yes, that too.

4. They award their CEOs with gigantic bonuses and salaries

As for the rest of the profits? They’re being pocketed by the bank executives. How many times do we have to hear about bankers receiving bonuses and golden parachutes after successfully crashing either the company or the economy? Thanks for the awesome leadership, feel free to take a few hundred million dollars on your way out. Even this week, Vikram Pandit, CEO of Citigroup – a bank which lost 88% of its worth under Pandit’s tutelage – walked away with $260 million upon resigning. Choosing to spend money that way when a company is in the red sure has me seeing red.

5. They take their money overseas

All that money is NOT going is to its employees. Or, well, not American ones anyway. After laying off 30,000 employees last year, Bank of America announced it will be adding more employees to its operation… overseas. It’s cheaper to hire people outside of America, after all. Don’t let the patriotic name fool you: Bank of America’s money will all end up offshore one way or another.

6. They just don’t care

Perhaps the biggest reason to lose faith is the utter lack of remorse. Even after crashing the country, big banks continue with their shady practices and make no apologies. US Bank President Richard Davis admit, “Everybody’s breaking the rules, blah blah blah… get over it.” Get over it? There’s no reason to forgive or forget when the bank execs are saying through their words and actions that they won’t be changing anytime soon.

 

Fool us once, shame on the banks. Fool us repeatedly while we continue to do business with them anyway, shame on us. It won’t be easy to undo the government’s inappropriately intimate relationship with the banks, but we can start by doing our part to make the banks no longer too big to fail. Before we’re compelled to bail out the banks again, it’s time that we bail out on the banks altogether. Making the switch to a credit union is not only easy, but it will restore your peace of mind.

 

Related Stories:

5 Major Banks Being Sued for Illegal Foreclosure Practices

10 Heartbreaking Foreclosure Stories

Citigroup CEO Walks Off With $260 Million After His Bank Loses 88% Of Its Value

 

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5:45AM PDT on Oct 23, 2012

Grace A.
According to the FED's rules in Money Mechanics, banks are to keep TEN % of cash, which means they can lend out a multiple of 9 times their deposits. They call it "leverage"

This is Fractional Reserve Banking-monetary System. This is how the money supply is created in USA and has been imposed on the world.

THIS IS WHAT THOMAS JEFFERSON WARNED US AGAINST:
"If the American people ever allow private banks to control the issue of currency,
the banks and corporations that will grow around them, will deprive the people of their property until their children wake up homeless on the continent their fathers conquered" Which is EXACTLY what is happening to us today.

....and what you are suggesting is to keep allowing the private banks to create our money supply, only in a smaller measure. It won't work.

Bear Sterns Bank had lent out 34 times its actual capital when it went bankrupt in 2008. Once you allow banks to create money out of nothing, they will bend the rules and we'll end up in the same place we are today.

This is what we have been warned against by:
- Abraham Lincoln assassinated
- Andrew Jackson assassination attempt
- John Adams
- Thomas Jefferson
- Henry Ford
- James Madison
- James Garfield Republican president assassinated
- MacKenzie King Canada's PM
- Joshia Stamp Bank of England
- ETC

Money has to be created INTEREST-FREE by the government as was Lincoln's GREENBACK in 1864, and for which he was killed.

4:04AM PDT on Oct 23, 2012

The way things are now, banks are supposed to keep reserves equal to one sixth of deposits; so, when the banks monetize the national governments debt, every dollar of national government debt turns into six dollars of money held by the public in checking and savings accounts. I believe I would feel better about our money system if reserves were half of deposits and the federal government would put its deficit spending into something useful, like saving farms from Climate Catastrophe by buying sustainable energy equipment bought from Military Industrial Complex firms instead of arms and armaments and trading it for fossil fuel reserves from fossil fuel firms. There was a time when money was backed with gold which was pretty and kept very well but wasn't of much practical use.

1:12AM PDT on Oct 23, 2012

So true,thanks.

5:00PM PDT on Oct 22, 2012

TERRANCE,

Thank you for the good video.
It's amazing the wide array of information readily available to anyone who wants to see it. Every day someone brings out a new piece of the puzzle.

THESE PEOPLE WARNED US ABOUT PRIVATE BANKERS
They saw it clearer when there was no Radio, telephone, or Internet.
===

"The issuing power (of money) should be taken from the banks and restored to the people, to whom it properly belongs"
"The government should create... all the currency and credit needed to satisfy
the spending power of the government and the buying power of the consumers... Money will cease to be the Master and will then become servant of humanity"
Abraham Lincoln

"If you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money."
-Sir Josiah Stamp

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
Henry Ford

"If the American people ever allow private banks to control the issue of currency,
the banks and corporations that will grow around them, will deprive the people of their property until their children wake up homeless on the continent their fathers conquered"
Thomas Jefferson

"Permit me to issue and control
the money of a Nation,
and I care not who makes its laws
-Mayer Anselm Rothschild
Banker

2:08PM PDT on Oct 22, 2012

Rafeal, Thanks for the great information and the correction. The concept of creating debt while rewarding yourself (banks) with trillions of dollars is sometimes hard to wrap your head around. This information we are discussing is so far from being discussed on the corporate media.

That first lesson was really great. So much was discussed in 9 minutes.

Here is a very interesting link from linktv that deals with the effects and some solutions to the crisis. http://www.youtube.com/watch?feature=player_detailpage&v=pMgOTQ7D_lk

12:01PM PDT on Oct 22, 2012

TO UNDERSTAND TODAY'S BANKING, YOU HAVE TO DO YOUR HOMEWORK.

WHAT YOU DON'T KNOW IS HURTING YOU.

99% of the people have the wrong idea of what money is, how it comes into existence and how it hooks us to banks in ways they can't understand, like drug addicts to a pusher.

Here are FREE videos you can use to understand how money is being used as poison, as a weapon against us by the banks, by using Fractional Reserve money system.

A Simple Solution to the Debt Crisis
http://www.youtube.com/watch?v=CrKV6bfqOck&feature=player_embedded 3 min

Debunking Money - 1 Myth and Machiavelli 1 of 5 9 min
http://www.youtube.com/watch?v=5iBSBVew-3Y

MONEY AS DEBT 1 47 min
http://vimeo.com/3843038

Making Money - (song)
http://www.youtube.com/watch?v=6AiuAotV_o0

12 yr old girl explains how banks commit fraud 6 min
http://www.youtube.com/watch?v=_ae7h8FioX0&sns=fb

FREEDOM TO FASCISM
1/2 http://www.naturalnews.tv/v.asp?v=26C7E7971AD40C08F7F9732C42CD0ECB
2/2 http://www.naturalnews.tv/v.asp?v=9CE819C5642C59095B15B6A22C671FC0

ZEITGEIST addendum
http://www.youtube.com/watch?v=1gKX9TWRyfs

THE MONEY MASTERS
http://video.google.com/videoplay?docid=-515319560256183936

THE SECRET OF OZ
http://www.youtube.com/watch?v=U71-KsDArFM

11:07AM PDT on Oct 22, 2012

Transfer your money to a credit union.

10:58AM PDT on Oct 22, 2012

GOOD ARTICLE,
BUT IT IS MISSING THE MAIN ISSUE.

Everybody so far in the US is blaming the banks for their crimes, but it is as if we were to blame the SLAVERS who benefit from Slavery, when THE PROBLEM IS THE SYSTEM OF SLAVERY ITSELF.

Banking is an activity necessary for society, but it is the Current FRACTIONAL RESERVE BANKING SYSTEM that is to blame for forcing banks to be the scumbags they have become

The system in place since before we were born, is A FRAUD because it creates the money supply ONLY as a debt, using the private banks in their everyday function of disbursing loans

This means every single dollar in circulation is owed to a bank. If someone has a million dollars in his account, someone else owes that million to a bank

THIS ALSO MEANS THAT EVERY TIME WE PAY OUR DEBTS, WE ARE TAKING MONEY OUT OF THE SYSTEM, and therefore making the economy weaker.

THIS IS WHY THE COUNTRIES THAT ARE DOING AUSTERITY, ARE THE ONES WHO ARE SUFFERING MORE THAN ANY ONE ELSE

So the main problem is people's perception of money is totally different form the type of currency we are actually using every day, and this is why the solutions applied are NOT fixing the problem

IN THIS SYSTEM THE ECONOMY CAN NOT FUNCTION UNLESS WE ARE IN DEBT.
We can't have money in circulation and have EVERYBODY debt-free.
It's impossible, and this,is why it is a fraud

SO WHAT WE NEED IS TO CHANGE THE SYSTEM, before we even start to try to stop all the other shenanigans bankers

10:30AM PDT on Oct 22, 2012

Suzanne L.

While Canada's banks are more stable, it doesn't mean they are much better than the US banks.
While US banks give you a 30 year mortgage contract, in Canada banks force people into merely 5 years and rarely into 7 year contracts. This means Canadians have to renegotiate their interest rate every time and pay closing fees over and over again.
If you want to pay off your mortgage before the contract ends, in Canada, banks charge you a penalty fee.
In Texas that's prohibited'. Mortgages can be paid off any time with no penalties.

In the end Canadian banks are under the thumb of the same international banking cartel that owns the world, making presidents and prime ministers simple administrators of their power.

Look at the following videos on Canada.

12 YO explains how banks commit fraud 6 min
http://www.youtube.com/watch?v=_ae7h8FioX0&sns=fb

Crime of the Canadian Banking System
1- http://www.youtube.com/watch?v=jghiU55O5eY&feature=related
2- http://www.youtube.com/watch?v=FyHpaHo71mQ&feature=related
3- http://www.youtube.com/watch?v=1ixeDP5LEEQ&NR=1
4- http://www.youtube.com/watch?v=hLtretltL3I&NR=1

OH CANADA

1- http://www.youtube.com/watch?v=eVBDwAuCdPw&videos=o2ChvjOYd8w&playnext_from=TL&playnext=1
2- http://www.youtube.com/watch?v=IiBSdBDeucU&NR=1
3- http://www.youtube.com/watch?v=_6uGHs6ojQA&feature=related
4- http://www.youtube.com/watch?v=q48bVc_KSIQ&NR=1
5- http://www.y

10:25AM PDT on Oct 22, 2012

TERRANCE N.

What your video states, is what I had stated in my first comment on this thread, and I took it from the same video.
Michael Hudson is one of the very few economists who are saying it like it is.

Also I want to correct your statement in another comment when you say:
"Our treasury was depleted of trillions of dollars "

It can NOT be depleted because we actually have NOTHING in the country's vault. These trillions of dollars are IOU's, are debts to be hanged from our necks and those of our great grand children for many generations for the benefit of the US and International financial crooks who control the system.

Look at this Course of only a couple of hours where you'll find the facts to support our assessments:

RENAISSANCE 2.0 Damon Vrabel
http://csper.org/renaissance-20.html

and this:
Debunking Money - 1 Myth and Machiavelli 1 of 5 9 min
http://www.youtube.com/watch?v=5iBSBVew-3Y

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