"US Banking" We have a win! Win! Situation... Conspiracy Theorist!

Over the past year there has been so much talk regarding the recent Real Estate market and it's downhill turn, as well as the US Banking Bailouts! I just finished "Capitalism: A love story" and I must say!!!! Brilliant!!!! Michael Moore for the most part has his foot on the throat of our entire bureaucratic government and their political B.S., exposing government in general, for what is actually taking place! As I was growing up over the years, I learned at a young age that the "Conspiracy Theorist" was that "crazy idiot", who was psychotically paranoid! Insinuating ridiculously absurd scenarios. An individual in desperate need of an quiet institution to rest his obviously overworked mind. This is the guy who went around spreading untruths about our well managed governmental systems! Government cover-ups and theories which are so out of this world at they have to keep them under lock and key in area 51! How do I know this guy is off his rocker and spreading untruths you ask? Because, my government tells me so! And portrays this guy to be absolutely NUTZ! And this guy is DANGEROUS TOO! Of course we want the American people to be comfortable with and believe in the US Government, and never question whether or not the US governmental system is doing what is right for our country! Without a solid belief, then, there is doubt... we must never allow this type of "free thought" for it leads to questions, questions which can not be answered truthfully and ultimately answers which can not be justified with facts! Truthfully accurate knowledge is all powerful. Without truth, we have lies, without knowledge, we have ignorance and with ignorance and lies we do not have any idea where to start, nor, do we have the tools to make choices. The tools necessary to make accurate choices, which ultimately lead to the right changes! And hence we have corruption! Economic meltdown! Sinking ships! Tanking companies! Burning beds! Governmental diversion of accusations <-> ... The American people must believe they are free, free vote, free to make a difference, free to elect their chosen officials, free to make a change! Unless what they wish is to change our pay and our system... then we have a problem! Okay enough of my negative venting! Here is the scenario... The banks never actually lost ANYTHING at all in this financial meltdown! Nor, did they need a bailout at the least! The way I see this situation is: There are a handful of major banks in the US, you have your Citibank, Wells Fargo and your Bank of America, they are the top three players, then, there are quite a few smaller banks which have dropped off my radar at the moment. Ultimately the major contenders are the ones listed here, the ones who asked and received the "Tax Payer Bailouts" right? So, when you got a loan for your home who did you use? And if you ever refinanced, you probably used one of them if you had decent credit score right? So, if these guys are giving you a loan to purchase an older home or a newer home then, who is this loan going to anyway? You did not receive that money personally did you? Unless you refinanced... that is a different story all together. So, ultimately whom ever you purchased the home from was probably a subsidiary of one of the larger banks listed above and in someway a sister company of sorts. Okay, so with all three major brands disbursing and receiving hundreds of thousands of loans in conjunction with each other, then... at the top of the housing market crash you would think that it would have been for the most part a wash between the big guys. It's like this... I bought a bicycle from you for $200 and you resold it to someone else for $200... but you charged interest right? And you probably did not resell it for the same price as you paid, especially with bicycles being so difficult to obtain in this booming market! Okay, lets say you did resell it for the exact same price... so, then you just broke even right? Well you probably make a little more with the interest payment for the past year or so right? And now that guy you sold the bicycle to lost his job and can't afford to make the payment of $6 a month. So, you decide to repossess that same bicycle. He paid you $6 a month for over a year and a half to finance it, and you charged him 6% interest, so, you ultimately received $240 USD! And now you get to take the bike back and then re-sell it??? And you feel you need the tax payers to help ya out since you lost money in a bad finance deal, and you are going to have to re-sell that bicycle at half the price which you sold if for previously?... poor you! Case and point.

"Recession Turn Depression"

I had a few more points to stab at you, that did not make it in the final cut of the previous posting "Moving right along... Today's Economy".

There is a bit more to interject here, to completely and accurately depict my lengthy synopsis of the recent economic recession.

Being that of the problem lies blame to "word of mouth", and the government's lack of media interjection or lack of information which should have been immediately interjected by government officials and broadcasted thru media. With a country so strong and looked at as such a predominate driving force behind the entire global economy, you would imagine that we would be much more organized and professional about the currently mishandled events. If government had organized with media and worked closely along side one another, we most likely would not be anywhere near the place we are at this current time. However, another major factor in this "psychological recession" is the "Real Estate Market" itself!

Yes, the Real Estate Market does in fact play a major part in the circumstances which lead up to our current state, however, when you dissect this beast meticulously, you will inevitability see that our "Modern Day Depression" truly could have been contained, whereas the banks would have been the only casualties or victims affected by these "Toxic Mortgages". If someone had done their job,(I would say properly, however, the job appears to have not been even done at all!) to head off the damage done by the "Bank Owned Properties" and contain the situation from it's toxic runoff, then, we most likely would have not been in the stew we are in today! With so many properties being foreclosed upon, it does not make ANY sense whatsoever that the "Banks" would not have adapted to what was inevitably about to occur. And government would not have immediately interjected at the root of the problem! Banks are/were in the position to have not lost anywhere near the amount of currency which they have at this point. There are two major things which could have been done to prevent the amount of loss they have incurred. Banks could have adapted to their current situation by doing the EXACT OPPOSITE of what they actually have done up to this point in time. The banks could have weighed their loss options and projected both possible outcomes.

1. Work with the home owners who were about to loose their homes and interject with an assessment of whether or not they are actually able to pay their current payments, and if not, re-adjust their terms, either percentage rate, or temporary payment reduction. Even, possibly add or roll a year or two onto the mortgage if necessary to recover some of their discounted loss.

2. Foreclose upon and hire "Property Management" for all the potential "Rental Properties" which they were about to inevitably acquire. This would have been a wonderful tool to head off the decline in market value of the homes.

Another factor in our current state was, and still is, the American Vehicle Manufactures. The entire situation was brought upon by the banks as well. Which was a direct result from this "Landslide Effect", which originated with the "Decline in the Real Estate Market". And spilled over onto the creditors/banks which then began the bleeding, continued on... and left unattended, eventually erupted into a "MAJOR BLEEDING OUT" of our financial institutions. Creditors/Banks froze their extension of credit to the consumer & businesses alike, which in turn, directly affected the sales of our vehicles, manufactures, stores, distribution, fuel sources, insurance companies and right on down the line! Our entire economy is affected, entwined with one another and driven by, not one facet, but the entire conglomerate of economic structures which work together, as one gear is driven by the other. However, without an source to propel the gears, they lie dormant.

That is all I have for now... however, with a topic like this one, I am quite sure I will be blogging a bit more later on.

-Richard Peacock