Sunday, February 22, 2009

The Banks Want Your Home!

The financial world has gone completely insane! A state of panic shivers throughout the entire system as borrowers, once in default who have managed to come up with the money to take their property out of foreclosure, are learning that the banks don’t want the money they want the home. In Las Vegas, Nevada, we have such a case. The borrower fell behind some $27,000 because his employer went out of business, he finally obtained another job and borrowed the money from a relative to bring his mortgage current, he paid the bank in this case, Wells Fargo, brought them current, and made three additional monthly payments. Then he found a few weeks later that the bank returned his money in a cashiers check (from Wells Fargo) and notified him they were foreclosing on his home.

The stunning reality of this is, the financial industry is proving to the world that it is an irresponsible industry that needs strong supervision. Ideally, the Banks should be nationalized and completely controlled as Alan Greenspan suggests. Generally, I do not agree with Greenspan, but in this case, I do. This is the only way to end the madness and stop the accelerating volume and velocity of foreclosures. However, this will never happen, as the banks are the primary funding source for the elections of the members of Congress and all political offices. If nationalized, party contributions would be “illegal”, and Congress would be compelled to become an honest branch of government. By maintaining the madness, the same old system goes on and on, and change will never occur.

We live in interesting times some of us are old enough to have lived through two major depressions, both under the watch of the Federal Reserve System, perhaps it is time to rethink who is allowed to control the money of our country. The fed was organized for two purposes, (1) the lender of last resort, and (2) to obtain full employment, it has accomplished neither. Supply and demand dictates with full employment, Labor controls Management, with 4% percent and higher unemployment however, Management controls Labor as such the Fed supports big business and not middle class America.

President Obama, this message is for you. You promised us change, yet we see in Washington business as usual!