A sibling works in a bank. He often makes salient observations that
stop me in my tracks. Here's a few.
A couple of weeks ago CitiBank was competing to buy Wachovia. Now
CitiBank is broke and being bailed out. What were they going to use to
buy Wachovia? "Loan to own" is an analog to "fail to bail". Predation
at two levels.
Of course the price of gas is going down as Bush leaves office.
They're covering their tracks, hiding the greatest profit rip-off in
the history of mankind -- that of the oil companies during Bush's
tenure. Who's covering it? Nobody.
Want to restructure your house mortgage? Screw the bank, literally.
Don't make your mortgage payments for a few months. The bank will tell
you say put and wait for the bailout. They'll rewrite your loan and
downsize both the principal and the interest rate. The banks can only
help you if you screw them. That's how it works today. If you're a
good citizen and abandon your home, the bank will have to come out and
board it up, maintain it, secure it, etc. -- and they will have lost
the ability to rewrite your loan. Screw 'em. That's what they want and
need.
The guvmint raised FDIC insurance to $250,000, good only until
December 2009. What happens then? If you have a million dollars,
you'll have to put it in 10 different banks. But there will only be
four banks by then. Go figure.
Dan
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