I love the smell of imploding and TBTF bankers. It smells like victory!

I hate the TBTF, there are plenty honest mid-level and small banks that were ready to step in and save a lot of consumers. They were in it for the profit margins and their own self interest. Funny their self interest aligned with the consumer not D.C. and not Wall St.
If you want my money pay for the privilege of using it. It wasn’t all that long ago that banks used to compete and pay 5% + for savers and offer  toasters and all kinds of gifts to attract savers. So what changed? Do you know? I’ll give you hint look at IRAs and the Fed.  Do your research and if you haven’t found the link in 3 days. we will have a study group. It has to do with a consumer and debt economy.
Go forth and learn you don’t need a masters in mathematics or economics. If you have ever had a ARM loan there is a hell of a lot difference between a 3%interest+ payment and a 6% intrest+  payment. If you have a Credit card go from 9.98% to 24% interest you know the payment difference is quite high even if you don’t understand the math. Almost all banks make you pay interest first. If you have a 5 year loan for $5,000.00  at 1% lets say it’s a family or friend loan. The cost of the loan is 1% interest over 5 years. What is 1% of $5,000 for 5 years = that is the cost of the loan. Now most of us will break the cost down to an average price of principle and interest per month payment. Most banks will ask you to pay interest up front and a small portion of principle. That is why if you look at your house payment you are paying $500+ for a payment, at least $300 goes for  interest and $65.00 on principle(the actual loan) and a bit for insurance /property taxes Banks front load the the interest. A simple home loan for $90 grand over 30 years will cost you over $200,000.00+ adding in interest which is front loaded on the loan and will be paid first to the Bank. Why would banks demolish homes? Cause they got all the interest for providing the loan up front.
   You will get a statement for your home payments. Take a good look at interest paid and principle paid. If you bought a home in the last 10 years I bet you paid more on interest than principle and DC gave a tax break for being a moron for paying the banks interest first. #1 admit you got took you signed that contract of your own free will. #2 start working to change the system.  Even if you have to admit you were a moron don’t let someone else get scammed. #3 check out MERs and your county assessor. I’m not saying you should not pay your debts but if the bank broke the contract its a broken contract. I mean I could not tear up my Mortgage paperwork and declare that contract null and void yet not  keep my home. The same should apply to banks or the mortgage originators.

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