What a shame about banks and mortgage companies.
(copyrighted) 11/15/08
I said before, you need Robin Hood.
It is amazing how we (the consumers) are taken advantage of in every direction possible. It seems that there is no one who cares for us.
Throughout the entirety of 2008, the Federal Reserve Bank (a bank of banks) has repeatedly reduced its lending rate to the consumer banks (banks you and I deal with) so that it would be a rescue to the banks’ massive financial losses, practically giving these banks hand outs -to stay afloat or be able to make MORE money while rubbing the consumers. The rate reductions went from almost 5% (4.75%) all the way to 1% now.
Then, the government (Treasury Department) decided to bail out these banks and lenders by handing them your money so that again the lenders/banks can further be saved. I know I do not need to get into the details of all these, because you have heard enough and I am certain you are SICK of it. Let’s not forget that the government was using your money to help out the companies that are already rubbing you. However, the “MESS” continues.
Let’s see what I am griping about now:
- Even though the decision was made to bail out the companies, the idiots at the government level now can not make up their minds in what or how to hand out your (consumers) hard earned money to the cheating banks/lenders.
- Even if you and I disagree with the bail-out plan, some of us are very fed-up with the nonsense we hear everyday. As a result, we are willing to let the government hand out our hard earned moneys to the ones who need to be behind STEEL BARS (the CEO and Presidents of Banks and Mortgage companies). Yet, the screwed up government can’t figure out what to do.
Here is the kicker.
- As the government and the Central Bank are giving so much incentive to the lenders, how much of those incentives have been tossed down to US (CONSUMERS)? NONE, ZERO…
Let’s analyze the third one a bit.
Have you tried getting a home loan or refinance now (November 2008). Try it! It will below your mind. The lenders borrowing rate from the Central Bank is 1%. Our borrowing rate (even if our credit may be A or A+) is going to be 5.75% to 6.25%. However, the lenders deceive us in order to get us through their doors. This means with all the rate reductions, there has been no change in the “consumer lending rate” ever since May or June 2008. Back in February 2008, when I was trying to get a mortgage loan, the rate I was offered was 5.5%. Now, even if we do not consider the government hand out and massive incentive to these lenders, or if we do not consider the number of times the Central Bank dropped the rate (for these so called lenders), my borrowing rate is going to be 5.75%. How about yours? I am certain yours wouldn’t be much different.
Where am I going with this? If you missed the point I stated above. It is:
The lenders screwed up consumers for the past several years by lying, deceiving and offering some ridiculous rates for Arms, Option Arms, Interest Only and a series of other deceitful schemes. Some of these lenders even offered 120% of loan for real estate properties (when they knew good and well neither the borrowers qualified nor the properties). They used these schemes knowing that they would pass the bad loan to another company that at the end would be tossed to the government (meaning at the end it will become our/consumer problem-as it is now).
Yet, now that the Central Bank and the government are doing all they can to rescue these scammers/lenders, lenders are still continuing with their scams and deceptions of consumers. Therefore, as days go by, I am more interested to see the Department of Justice (the government) put the companies’ CEO and presidents in jail, than seeing them benefit from consumers’ lack of knowledge, immediate needs and financial stress.
Again with love and best wishes for all those who are suffering as a result of both the companies and the government’s wrong doing.
Please write to me and let me know what is in your mind or share you stories with me. I want to be there for you
Mike Samadi
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