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The Bank is Dead – Greed Lives

July 29, 2010

Banks as we’ve always known them are dead. The word “bank” has become a misnomer because they have morphed into “global financial institutions” that are so large they have been deemed “too big to fail”.

To quote Gordon Gekko in the 1987 film Wall Street: “The point is ladies and gentlemen that greed, for lack of a better word, is good.” Good for whom? Good for the greedy! That line makes any moral person want to puke. But, today’s “banks” – these money-sucking, self-important behemoths – have elevated greed to a new level. Greed is not only good… it is everything!

We all are painfully aware that greedy “bankers” brought the world to the verge of a second Great Depression and global economic collapse. But we, the little people, bailed them out so that they can continue to reap obscene salaries and bonuses. Then, along comes the financial reform bill that’s intended to clean up Wall Street. Like a vacuum cleaner on steroids, though, when all the money has been sucked from one room, the greedy bastards simply move to another room and continue sucking. They are no longer allowed to impose large fines on people who overdraw their accounts unless the account holder opts into the practice. So, to make up for the billions they will lose there, banks are now going to start charging for checking accounts that have been free up until now. Who does this hurt the most? The people who can least afford it.

Traditional banks made plenty of money by taking in deposits and making loans. That’s all a bank is  supposed to do. Banks showed their appreciaton of their depositors by paying them a decent interest rate for the use of their money. The reasonable profit came from the difference in the larger rate banks charged borrowers and the lower rate they paid depositors. That was before greed took over. In 2007, I took out a CD at BofA at an interest rate of 3.75%. I felt appreciated. Now the rate is a measly 0.7% and I’m pissed.

Banks can currently get money from the Fed at 0% interest. That’s FREE Money! But they aren’t using it to make loans. They are investing it in high-risk, high-yield instruments that will make them more money than if they loaned it to the small business person or the prospective homebuyer. These cats are fat and getting fatter all the time while we little people keep getting littler. As if this weren’t sickening enough, these same fat cats are the ones reaping the advantages of the Bush tax cuts.

Are you angry yet? You should be. They need to be taken to the woodshed and taught a lesson. The only way to do that is to hit them where it hurts. The problem is that we can’t just take our money out and put it under the mattress. There are other greedy scumbags that would break into our homes and take it from us. We need the FDIC protection of our funds. We need to be able to write checks. We need to earn interest. Here is the only solution I can see:

Force Congress to-

1) Prohibit financial institutions from using the word “bank” in any context. They aren’t banks anymore. They are reverse Robin Hoods.

2) Add the word “traditional” to the word “bank” and only allow the term to be used by institutions that are truly just that (as described above).

3) Encourage the establishment of “traditional banks”. Once these banks are established and verified, we move our money there.

This would send a message to the huge financial institutions that they’re finished screwing you and me. When we’re no longer there for them to screw, they will have no one left to screw but themselves.

2 Comments leave one →
  1. Linda Roth permalink
    July 30, 2010 2:31 PM

    Another thing, do you realize that banks charge $36. to stop payment on a check? And why do you continue with BOA?

    • July 30, 2010 4:43 PM

      I haven’t stopped payment so I didn’t know that. It’s just one more example of their unrelenting greed. All “banks” are equally guilty so we really don’t have alternatives. The only reason I stay with BofA is that they let me withdraw money from my CD which I must do every month in order to live. Other “banks” I checked with don’t have that option and their interest rate is equally low.

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