Did anyone hear Bernanke talking about...
- "the mixed message" that some small community banks
are receiving from the Fed?
He had to address, and spin that - because small community
bankers are finally telling the public what's going on.
I've been pounding the table on this for months, and I wish
I could find the words to say it better...
There is no "mixed message" here people.
The Federal banking regulators are in these banks, and they
are literally turning off the credit spigot.
Meredith Whitney also confirmed this live on CNBC. She said
"50% of all existing, available consumer credit is being
cut off."
I wrote a couple of months ago, about a VP I know at a large
Regional Bank who told me about this. It was "his words" not
mine... that quote: "This is going to drive a stake in the
heart of the US economy."
And small community banks are being crushed by the explosion
in FDIC fees. I read a story online about a small bank that
had to turn down a multi-million dollar cash deposit, because
they couldn't afford to pay the new FDIC fee's upfront out of
earnings.
The FDIC is also adding a new "emergency fee" to small banks:
wbztv.com
"Clearly it's going to pull capital from banks at a time when
they need capital," said Keith Leggett, a senior economist at
the American Bankers Association. "I think it really requires
the FDIC to have the judgment of Solomon here."
online.wsj.com
From the WSJ article, here's a comment from a former FDIC
regulator, who's now a small banker:
" I was there, too as a regulator for the FDIC. Now, I'm a
banker - trying to employ people, lend money, pay competitive
rates, innovate, etc. Two years ago, we paid under $40,000 in
FDIC Insurance premiums. Now, we will pay close to $1 million.
-- Mike Murphy"
A $960,000.00 increase in FDIC insurance for a small bank!?!?
Every small bank in America is suffering to some degree by
this economic collapse... but, those types of fee increases
are taking solid, sound, profitable banks -- and bankrupting
them.
...by design.
Small community banks can't access money as cheaply as the
"TARP Bailout Banks" and now they are being forced
to pay for it via 20-fold increases in FDIC fee's that
can bankrupt, or wipe out all, or most of the operating
earnings of small sound banks.
...by design.
Only 5-7 major banks currently dominate approx 75% of all
mortgage loan origination and consumer credit card lending.
The Government is now consolidating that even further via
crushing small community banks by these policies.
Fed Ex just did more job cuts, so did CAT.
Remember Obama saying how this stimulus package would save
20,000 jobs at CAT, and the same day the CEO of CAT had
to do a Press Conference and say - no, this would not
stop those layoffs?
And this week,CAT just announced more job cuts!
msnbc.msn.com
Now what did the stimulus package really do for CAT?
-- not a damn thing.
All campaign bullshit hype.
And it was never intended to.
Because it's not about jobs, it's about the transfer of
America's national wealth and sovereignty to a group
of globalist, one world government bankers.
And Nucor's CEO said steel demand - "has just fallen off a cliff."
forbes.com
Unemployment may rise another 50% from present levels over
the next 6 months, simultaneous to credit is being shut off
to the consumer.
And here's another thing...
Remember how they reformed the US Bankruptcy Act (just before
the credit bubble burst)?
One of those provisions allowed credit card lenders to now
"retroactively" hike rates, and minimum payments on credit
card balances.
The banks are doing this from the bottom up, and these are
to customers who have paid as agreed and who are NOT having
ANY credit problems.
They are starting now, with the lower credit grades, and
people who were paying 18% with a 3% minimum payment, are now
being jacked up to 29% or state ursery limits, and minimum
payments hiked to 5% of the balance. Again, these people
are paying their bills - all of them, and on time.
This is pure profiteering by the banks.
The working middle class can not just close out those
accounts, and open a new account with another bank,
because the other banks are doing the same thing.
Middle America families who are being hit hardest by the
economic collapse, and who need and depend on credit the
most - are being squeezed. Literally having their payments
raised by $100-$300 per month, which is all pure profit
to the banks.
And the banks will start doing this to the upper tier
credit customers next. It will start with cuts to existing
open credit balances, then rate hikes, then minimum payment
increases.
Now, where do you think the US Economy is going?
There is no significant job growth, or infrastructure build
out going to come from the "American Recovery & ReInvestment Act."
It will no more lead to reinvestment, and recovery; than
the Patriot Act was patriotic.
And most importantly, "they" are done writing Think Tank
white papers, done giving speeches, and done planning.
What we are seeing now, is the execution of those
policies and plans.
Conspiracy theory has finally become reality, and America
now has two choices...
Stand up, or roll over.
SOTB |
