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Even the Larger Companies are Getting Shafted by the Banks, Are You Listening Congress?
I received this email a couple of days ago. I looked into him and he
is a relatively large concern. It is not just the little guy getting
shafted...
Reggie - I am a large hotel
company and have been treated like a thief by the doo doos [he is
referring to Reggie Middleton's notorious Doo Doo 32 (As I see it, these 32 banks and thrifts are in deep doo-doo!)].
It infuriates me everyday. This statement is obviously false and
banks are using every coverage or ltv test they can to make borrowers
pay loans down. Please do not use my name in anything...http://www.marketwatch.com/story/suntrust-reports-third-quarter-results-2009-10-22
Additionally,
commercial loans have declined due to weak loan demand as a result of
the recessionary environment and borrowers' desire to restrict capital
spending and pay down existing debt facilities.The Company
has substantial available liquidity as the inflows of high quality
deposits and longer term financing sources have largely been retained
in cash and invested in high quality government-backed securities.
Anyone
interested in my latest take on the Suntrust numbers (remember, I
warned you about them, repeatedly, a long time ago) should look here: Reggie Middleton on Suntrusts Q3-09 Earnings
Banks insisting borrowers reduce LTVs and increase coverages....shocking. I think this is what all agree they should have been doing the last 5 years to avoid the mess we are in.
So it seems prudent they should do so now and in the future. Reality check folks - you can not live with the level of leverage you unwisely grew accustom to....this is pretty simple -- painful but simple.
Note to hotel industry: You have VERY HIGH operating leverage which might lead one with a view beyond a year or two to run your hotel company with VERY LOW financial leverage.
"The elites will bankrupt this country through refusing credit through their banks and charging 30% interest on credit cards."
I see - undercapitalized banks (which nearly everyone believes they are insolvent to a degree) should be more aggressive in lending. I think that is what got us into this mess. Hence banks need to build their capital base and be very careful in lending money.
Only fools carry a balance on their credit card. Americans - please stop spending and start saving and take care of yourself. You can not afford many of the things you do and the things in your house, so stop it. I know - how barbaric - no cell phone?? no cable tv??....impossible.
Forgot to add: as far as I can see, what needs to be done here is that the banks (and other financial institutions) need to have their newfound ability to cost-shift taken away from them.
Claiming that we need the "USGov Bank" to solve all this only *enhances* the ability of stupid people to cost shift. Please believe me when I tell you that this is not what you want.
When people make bad decisions, they (and the people who gave them money) need to eat the cost of those bad decisions, not you and I. Once you short-circuit the market mechanism of the Consequences of Bad Decision-Making, it's "anything goes" time. Which is exactly what we have now.
[as an aside: can someone please throw me the tag for italicising text?]
OK, first off you don't even know who you are since you are lurking and can't even commit to an avatar. Your comments show your poor understanding of the situation at hand.
I must let you in on a little secret, although with your comments you may already know and could be a troll/shill for the fed/banks, this is a clear takeover of this country and the people taking over the country have bought our representatives with our own money (taxpayer bailout money). I agree that the government isn't the most efficient, however they can't possibly be less efficient than the TBTF's and the 600 trillion in derivatives.
This is not about smart or stupid, this is about total control and I am surprised that so many don't understand this. Your comment on accountability for bad decisions is true, but it's not happening, we are just bailing out the losses in tax bailouts - I would rather also get the upside. What you seem to not understand is that we are paying interest on money that is just made with a few key strokes on a computer (fed - national debt). This is the last chance for this once great country, a chance to free ourselves from the beast.
The elites will bankrupt this country through refusing credit through their banks and charging 30% interest on credit cards. Trust me, these banks are running the country - read the quotes again - they over rule your hypothetic arguments regarding what is better or more efficient. THIS IS A TAKEOVER.
[New Public US Bank (of, for, and by the people not owned privately) or Nationalize - That is the calling cry and the only answer.]
A bank run by the Feds would make the fractional reserve banking system we have in place right now look perfectly reasonable. And the same politicians you want to have run this "public" bank of yours are the same ones who have run Social Security, Medicare, and other "Live now, pay later" entitlement programs that have burned through metric diaperloads of money.
And just what do those programs have in the way of assets or cash? Nothing. Just a big "IOU" in a desk drawer somewhere, as the money that's supposed to *be* in that desk drawer was blown through long ago by those politicos.
Guys, I agree: the bankers were morons. But you don't improve on morons by replacing them with idiots.*
*Yes, there is a difference.
Seems like an IQ test and an STD blood test should be a requirement for entering the banking business.
Is This A Joke
What do you get when one insolvent company merges with another insolvent company...
Heres the Kicker
To Big To Fail
The banks are taking over all industries, ironic considering they are technically insolvent.
A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson, after signing the Federal Reserve into existence
The government, which was designed for the people, has got into the hands of the bosses and their employers, the special interests. An invisible empire has been set up above the forms of democracy.
Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the U.S., in the field of commerce and manufacturing, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.
Liberty has never come from the government. Liberty has always come from the subjects of government. The history of liberty is the history of resistance. The history of liberty is a history of the limitation of governmental power, not the increase of it.
All good Woodrow Wilson quotes for what is currently transpiring, and this individual signed the fed into existence (if there is a bust or a statue of him in Washington it should be taken down).
We need a national bank, we can either start a new one or nationalize the TBTF's because they are technically insolvent. Our representatives are not wise enough to sense that all of the constituents have their backs (in one way or the other) and that they have the power of numbers to take back our country from the bankers. They are not wise enough to realize that they hold all the cards since the banks need to be back stopped and need the debt ceiling increased for another bailout. They have all the power but are so used to taking orders from the bankers that they are just doing what they are told instead of emancipating us all (including them from the clutches of the banks).
New Public US Bank (of, for, and by the people not owned privately) or Nationalize - That is the calling cry and the only answer.
Great post A.N.
Nationalization if even temporary may be necessary. Net the swaps... and end the games. It's the only way to end capture.
I very strongly agree. Time for public banks. Hang the motherfuckers in charge of the TBTF post-haste.
hang my ass....they need a pitch fork rammed
straight up their asses followed by soaking
in boiling oil followed by having their skulls
bashed in by crowbars.....
In the interest of cooperation I will agree to your conditions provided that we can hang them after.