Sid, your suggestion that economical indebtedness may not apply to the book club members is the opposite, all consumers unanimously are contributors to every effect of economy, from A to Z, since there would be no indebtedness without human participation.
However, the difference is how much each individual contributes to the fortunes or misfortunes of the economy, I remember “Steve Jobs” biography book was received with a lot of skepticism, accusing him of cheating and manipulation for self financial advancements, rather than how the same public help contribute to his cause.
Like “Bad Paper’s Aaron Siegel, Washington’s own homegrown “Shawn Portman” bilked Washingtonians over a billion dollars of bad mortgage which he is serving a 10 years sentence behind bars, his supporting cast included the nationally real estate powerhouse “John L. Scott” and their local affiliate agencies with close ties to Shawn Portman, showering him with a ray of parties filled with behind the scene bonuses.
Giving him the false pretense of invisibility, allowing him to single-handedly take advantage of 1000’s of naive consumers, establishing fraudulent mortgage qualification papers which were conveniently accepted by the brokerage firms and their mortgage lenders.
I had personally confronted many ignorant consumers who presumed borrowing came without restitution, city finance managers, comptrollers with a collegiate masters degree, businessmen, fire fighters to the minimal required salaried ($35,000 annual household income) people all dreaming of financial freedom, some borrowing to foresee new prosperity. Yes, the big boys always fill everyone’s plates with empty promises, but it’s the average Johns that take the bate and run it to the max.
And when supposedly “SHTF” and the blame games began, the real estate agents blamed the mortgage brokers, the mortgage brokers blamed the financial lenders, the banks blamed Government regulators, and the regulators blamed the consumer, and the consumer rolled over playing dead victims, bailing out the gaming shysters over again.
I do believe there were few of our members that might have directly or indirectly experienced the housing sub-prime lending or the Wall Street financial manipulations and the 2008 bubble burst that followed. However, the consumer almost always places the burden of proof on the system and it’s manipulators.
Perhaps the single most culprit to capitalistic economical failure is the theory of “supply and demand”, creating the false presumption of over consumerism, “the more you buy, the better for the economy”, that it creates jobs. In true translation, “buy now, pay later”.
Then you have “deregulation” which in reality means no accountability. And the unconditional lending by the Central Bank to the depository Banks, remember the Government and it’s Central Bank do not make money rather just print money, based on the Government’s revenue collections from it’s taxpayers and the so called credit worthiness.
I believe it was somewhere around 1913 “the year of income tax” that the “Federal Reserve Banking system” was established, a law allowing banks to govern themselves, which most people still presume it a Government accountability department, which in reality it took most banking regulations away from the Government.
Therefore, the Depository Banks assumed that the “Fractional-Reserve Banking” no longer applied to them and can borrow limitless at low interest rates and allow themselves to gorge the depositors money without “deposit liabilities”, thus creating a gap between money on hand and money spend “consumer’s money that is”.
The 1800’s “80/20” Deposit Liabilities mandate had shrunken to “20/80” by the time of Ronald Reagan’s presidency and on to the end of George W. Bush’s era had dipped down to a mere 5% “Deposit Liabilities” which since has reverted back to “20/80” if you could believe what you read.
And the Government’s bailout guarantee is as damaging as the thievery of financial speculators themselves, however, the reverse is eminent with the taxpayer “IOU” bailouts or as is commonly called the “Bankruptcy” protection, as the clueless debtors seek Government protection and are unaware that the system will loot them in most cases.
Yes, it’s so easy to read about the thievery of 2 high rolling ex-cons, yet hardly any CEO, CFO, BIG SHAREHOLDERS or the big time benefactors (the elite) are ever held accountable, we’ve all heard of Bernie Madoff, but how come only a handful of his victims asked for restitution, after all most of those victim’s losses averaged in “Billions and not Millions”, well Steven Spielberg wouldn’t want to open his books showing his takes from the actor’s guild pool, would he?
The answer is a simple one, one thief hit another thief, then there was the whopping $7 Billion Euro transfer by a local “France” bank clerk (sorry a teller) from the bank’s reserve accounts and on to a private “British” J.P. Morgan account without the required secondary signatures, and did WA. Mu., Country Wide, Long Beach, Green-point”, and other home mortgage conventional lenders really get shut down?
No not really. Using the bailout money that was divided among the same thieves at 10 cents or less to a dollar, Country wide the one time largest mortgage servicer was consumed by Bank of America’s 1.7 trillion in deposits for $114 billion dollars payout and in return B. of A. received Country Wide’s Depository Banks with it’s 114 branches to be exact, which had $199 billion dollars in consumer deposits (17th largest bank in 2007) plus nearly 40 million mortgage loans, including its 8.7% “sub-prime loans (according to NY Times”) which not all were defaulted loans”. The greatest banking acquisition by any means.
Second place should go to the Wa. Mu. acquisition which was galloped by J P Morgan for a mere $48 billion dollars paid for by the taxpayer bailout money, who merged with Chase who merged with Manhattan Bank, creating “Chase City Manhattan Bank” referred to as “number two” behind Bank of America.
We could toss into the mix, the Lehman Brother (4th largest Bank before 2008), “Wells Fargo” or the British global bank “HSBC”. I don’t deny that there were and are and always will be victims of the system and the scandalous and their poison pills, however, how is it that general public keep swallowing the same poison over and over again.
Like Ronald Reagan “Donald Trump” proposes more deregulation allowing the big businesses to self govern, a policy that has failed over and over again, “Hillary Clinton” makes no claims but said that during president Obama’s almost 8 year reign the big bank/corporate accountability was stronger then ever before, “nonsense”, Obama’s reign has cost the American taxpayer a whopping 10 trillion dollars additional deficit.
And it seems Well’s Fargo is at it again selling 40 million of it’s customers private accounts to the marketeers, while Ford Motor Company announced moving it’s non profitable small car market manufacturing out of the US borders and on to Mexico, Trump is suggesting more Reagan like tax breaks, Hillary claims that her husband’s fare-trade “NAFTA and AFTA” are good for the business, giving IMF more power to milk the economies of the world.
It’s these ideas plus the public’s own greed and ignorance that has plagued the economy toward doomsday, there always will be the market manipulators seeking out victims. And the forgotten “Pay Day Loan” with its 36% interest rate targeting mostly the GI’s and the low income areas, placing their stores smack right in the heart of the under privileged communities.
Another legal scam is the legal debt relieve negotiators, in other words, hiring an independent party to manage and negotiate your debt on your behalf, as they collect an average of 15% fee upfront, mostly taken away from one’s paycheck with no guarantees, similar to that of a stockbroker who collects his fees, whether one profits or amasses losses from their investments.
And for anyone to assume that with the so called housing mortgage claps came the truth, think again, shortly after stricter mortgage lending laws, new lending products were introduced, such as the “Reverse Mortgage Loan” targeting the elderly, robbing them out of their livelihood.
As for the debt collectors, now lies a corporate tax write-off loop allowing “loss sheet recovery” where if they do not collect in justified time, tax right-offs become the incentives, and the more tax write-off credit the more lucrative the bonuses for the upper managements, hear Donald Trump” and his loophole knowledge boasting.
Furthermore, there are new loopholes to help free Financial Service Providers” or debt collectors and their vendors from most “Consumer Finance Protection Bureau” (CFPB) regulations, law firms like “Billing Tree” where their focus is designed to bypass congressional regulatory compliance for the debt collectors, referred to as “Men in Suits”.
Then there was the George W. Bush designed Consumer Credit Bureaus “Experian” “Equifax” and “Transunion” supposedly installed to help the borrowers with their credit worthiness, which in reality allows the financial institutions the much needed propaganda to lend endlessly, I only wished you could’ve been there to see the faces of the banking mortgage reps and their product promos, enticing the mortgage brokers with $1000′ of dollars of bogus bonuses to sell phony mortgage finance, regardless of one’s affordability.
And the buck doesn’t just stop there, during the Iraq war “IRS” spent thousands of taxpayer money sending a real live agent to collect $1500.00 in uncollected taxes from a soldier, who’s auto repair shop business had failed him while on duty, believe it or not the soldier was pulled off from the battleground front lines to make restitution, which it became a national news sensation revising “IRS” tax collection tactics.
Of the general public’s greatest banking misunderstandings is; “The Digital Money”, to pull out, they must put in. This is Digital Money. To get money out of Bank A, you must put it in Bank B. This is essentially simultaneous. So the banking sector in whole is not imperiled. The money supply does not shrink but the confidence erodes.
You see my friends, the public practice remains the same, asking the same questions and accepting the same old answers, “the game of cut throat” everyone for themselves.