BANKS CAUSED WORLD FINANCIAL COLLAPSE- NOT MORTGAGE BORROWERS

You might have noticed how, when the ludicrously described ‘Credit Crunch’ began a little while ago it was all blamed by the banks on those feckless individuals who took out laughingly called ‘sub-prime’ mortgages to buy houses.

But now the entire World financial system is in collapse with the global economy grinding to a halt, companies going bust and millions of people losing their jobs and houses with cataclysmic poverty stalking the Globe.

It is no longer just ‘those feckless individuals’ with sub-prime mortgages who are unable to pay their debts. It is viable, previously profitable businesses all over the World, even whole countries going bankrupt; forced into financial chaos by banks interfering and controlling borrower’s affairs, as the banks panic at the sheer enormity of what they have contrived to destroy through their greed and fraud.

Now the banks seem to be blaming each other, because the sheer scale of the Worldwide financial collapse has simply dwarfed the number of genuinely ‘feckless’ people who shouldn’t have taken out loans to buy their houses . There never were really that many people who were genuinely unreliable about paying their mortgages in the first place.

A closer look at what is now going on reveals that banks misused the power they gained over any group of people they persuaded to borrow money from them. The banks manipulated whole populations of borrowers created out of the banks brutal use of the psychology of persuasion.

Everyone was ruthlessly conned and brainwashed by the banks into imagining that it was OK, even necessary, to spend nothing but borrowed money for absolutely every purchase. All the ‘real’ money people and businesses actually earned for themselves was therefore controlled by the banks. All earned money was already fully committed to the banks to pay off existing bank loans before it was even earned.

So, the banks controlled ever more of the economy, both individual’s personal domestic expenditure and also that of every business. Everyone was expected to constantly increase their borrowing to enable the banks to create more money so the banks could take ever larger profits for themselves. Pure, raw greed ruled throughout the entire financial industry. Fraud became something institutionalised in virtually every part of financial services as the scale of dishonesty and graft grew larger day by day.

What has happened is the banks have been caught out trying to lie their way out of a problem entirely of their own creation. It never was a situation caused by sub-prime mortgages and hordes of dishonest home owners as the banks would like us all to believe.

The fact is the entire World economy is completely dependent on a system of money which very few people understand. Governments mostly don’t understand it and certainly few ordinary individuals understand it. Even most of the people working for banks don’t understand it, and even economists don’t seem to understand it as they often argue amongst themselves about how economics actually work.

Banks are entirely responsible for shaping the economic system and are the only custodians of the system of money. It is something they, themselves, designed in the first place. They designed it as an immense confidence trick which they could only get away with if they displayed reliability, probity and apparent total honesty of the highest degree.

The system relied on the banks restraining their greed; and so it worked more or less reasonably well when a fundamental requirement of working for a bank was honesty and integrity. Integrity, honesty and reliability have now been entirely swept into oblivion by the banks. ‘Greed is good’, they trumpet self righteously from their pompous, rubbery, bloated, personages as they pocket their enormous bonuses.

Greed and dishonesty took hold of the banks in recent years as they corrupted the entire financial system with a moral degradation of breathtaking dimensions.

It was they who invented the sub-prime mortgage as a device to milk even more money from their increasingly hard pressed population of modern customer-serfs now owned by the banks instead of mediaeval robber barons.

The banks simply devised one scheme after another to tighten their stranglehold over every single financial transaction made. The banks made it increasingly impossible for anyone to escape their clutches or for anyone to avoid using them for even the pettiest of financial transactions.

The beauty of that was that the banks could increasingly justify taking a cut of every transaction they were involved in. Their ‘cut’ became larger and larger as they discovered they could push the limits of credulity beyond their wildest dreams of greed.

They brainwashed everyone into believing it was a normal way of life to routinely use ‘credit cards’ (simply a clever device to force loans onto people who neither wanted them or needed them). They invented the quaint idea of ‘penalty’ charges that could run into thousands of per cent in annual interest terms. No one questioned them, let alone stopped their rapacious, destructive, nasty, greed.

We were all completely bemused and baffled – caught like rabbits in the headlights of confabulated nonsense jargon and incomprehensible, arcane, rubbishy, banking language used to disguise the reality of blatant theft.

They further brainwashed people into believing it was somehow a good idea to borrow money to buy all the usual everyday things of life immediately and pay for them later. This way the banks could take a percentage of everything anyone spent on absolutely anything at all.

They neglected to inform people it would mean they would be paying for everything twice or three times over. The banks didn’t want anyone to realise it was much cheaper to actually save up to buy everyday domestic items.

As the banks conned every increasingly gigantic amounts of money out of the population, they had to keep on lending ever larger sums somewhere as the last thing you can do with money is store it inertly in a bank vault or under your bed where it is of no earthly use to anyone.

So the banks invented ever more abstract forms of money and lending that flew around the World financial systems from bank to bank like an insane, manic pass the parcel game as the minute any bank was in possession of any actual money it had to get rid of it as fast as possible in the form of a loan to someone, somewhere. It didn’t matter who or where as long as they got rid of the cash as fast as possible – anywhere.

So, larger and larger mountains of cash were manufactured by the banks originally designed confidence trick of ‘Fractional Reserve Banking’ successfully foisted on Governments and populations the World over.

No one seemed to understand that it meant banks had the ability literally manufacture unlimited amounts of money as long as they could find someone to lend it to, meanwhile shaving off their own cut. More loans made, more of a cut for the banks – more profit, bigger bonuses. No loans, no banker’s cut; simple.

And now the banks have found it is wildly out of control. Their inherent dishonesty means they can no longer even trust each other. If honesty and integrity had been maintained there would have been no financial crisis. It was entirely caused by banker’s greed and manipulation of the system of money away from reality and into the realms of pure fantasy.

It is the banks, and the banks alone who are responsible for the awful consequences of global Economic meltdown.

The banks have destroyed everyone’s confidence in money and the financial system as a whole. Isn’t it about time someone did something about them ?

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8 Responses to “BANKS CAUSED WORLD FINANCIAL COLLAPSE- NOT MORTGAGE BORROWERS”

  1. Lookinthemirror Says:

    Again, I agree with many of your points, however you did not respond to my comments that we currently live in a DEMOCRACY (or, sort of????), and that allows people to have CHOICES. With regard to your analogy of the “drug” pusher (the bank) and the addict (the individual), I find that particularly disturbing. Street drugs are ILLEGAL in our society, and addictive so to make that analogy to the world of banking and finance is quite a reach. The real problem stems from the fact that we are a nation of SPENDERS, not a nation of SAVERS, and we can debate that fact forever, however it is still a fact. I guess the fact that our people are so easily led down a path of financial destruction by “con men” that excuses the poor business decisions they make? Our government is moving very quickly to becoming a Socialistic style operation, which will remove incentives for entrepreneurs, and those that truly make a difference in a society’s growth and accomplishment. This is a huge disappointment and is directly caused by the government itself. Unfortunately most “sheeple” (followers) tend to model themselves after their government…….and guess what, they SPEND, SPEND and SPEND! One final note, we have created such a moral hazard in this country that nothing is taboo. Contracts are re-written, and revised as if they meant nothing, this may be the final break-point of our democracy, when the rule of law (i.e contracts) is ignored to help a select group of people. God help us all…..this situation is MUCH worse than most people understand. I don’t know if Looking in the Mirror will help us much at this point. The mirror is cracked, and the reflection is hazy at best.

  2. rocketone Says:

    Thanks for than Cynthia. I need to write about my experiences with mortgage brokers. Remind me in a while if I forget. I have some really interesting first hand experience there !

  3. rocketone Says:

    Lookinthemirror

    What you say is correct and I wholeheartedly agree with what you say, BUT. life isn’t that simple.

    No person is immune from the processes of persuasion. We all have complex brains and are all subject to the same complicated processes of psychology (of which we know little).

    This means a ‘weak’ person might easily be persuaded about some idea with little time and effort. Stronger people take more time and effort to persuade.

    Even the strongest, most vociferous objector to an idea can eventually be persuaded when enough time and effort is spent.

    So, you get the extreme form of persuasion called ‘brainwashing’ which, apparently, persuades everyone that black is white eventually, however wrong that might be. It works.

    The banking community have clearly persuaded vast numbers of people that it is a ‘good idea’ to do things they way banks would like them done.

    Credit cards seem to be a good example. I can think of no earthly point or meaningful purpose of holding a credit card. They ultimately confer no real and meaningful benefit.

    It is obviously a con trick to lure people into thinking there are some benefits because the banks have a clear understanding of the psychology that people will misuse the ‘credit’ in a a manner which allows the banks to hold the cardholder captive with an excuse to charge ludicrous rates of interest which would once have been laughed at for being so impossibly excessive.

    There is also the issue of sheer coercion on behalf of banks.

    I have personal experience of being coerced, forced really, entirely against my wishes into doing things the banks want me to do which have been totally inappropriate and whereby the banks have left me with no alternative but to chose the lesser of two evils they have forced on me.

    This process of coercion is rampant in the banking system and it does force people to agree to taking lousy financial decisions they would rather not. Banks leave them no alternative.

    This coercion is similar to the ‘protection racket’ style of criminal. Nothing bad will happen to you if you accept the lesser evil of paying the criminal the protection money. Refuse to pay it and you will end up in hospital unable to ever walk again.

    Banks apply these principles in subtler ways and that is why they are wicked.

    How can you not say they are truly wicked when they have brought about such immense global destruction by, according to you, relying on the apparent stupidity of individuals choosing to accept the banks lousy and destructive products. Does the existence of stupid people making bad decisions justify allowing the banks immoral behaviour ?

    If I was a bank and knew I could make tons of money in an immoral way out of of hordes of suckers I would know that it was wrong and I would not like to behave that way.

    If I was tempted to behave that way and then it all went wrong in the manner the current banking crisis has, I would also know that it was not just a question of my bad, immoral behaviour being something of concern only between me and the stupid suckers I conned.

    I would know that I had been responsible for visiting a great evil on entirely innocent people who had not been among the dim suckers I targeted.

    Just because some people can be taken advantage of, fleeced, conned, robbed, it doesn’t mean that the concept of democracy and freedom should also allow rapacious criminal behaviour to exist to take advantage of the suckers or weaker or less educated people.

    I think that is why civilised societies have things called police forces.

    According to your logic, buying and using drugs like Heroin is entirely the choice of the individual and they should be allowed to do that if they want to; and the drug dealer that sells them the drugs should also be allowed to ply his evil trade just like the banks are allowed to be thoroughly immoral too and take advantage of anyone weak enough to fall for their deceit and manipulation.

  4. Cynthia Says:

    Nicholas -brilliant. Totally agree. You forgot to mention the evil mortgage broker who was MOSTLY responsible for this mess (atleast so here in the US)

  5. Lookinthemirror Says:

    This is a very interesting article and focuses on some very valid points. One thing to note however, is that we live in a DEMOCRACY. It is up to the INDIVIDUAL to make informed decisions prior to making ANY investments. You make the case that it is the “enablers” (i.e. the banks) that created and distributed the product to people are the one’s to blame. That is true to an extent, however the real culprits are the one’s who ACCEPTED their lousy terms and conditions. My take on all of this is that not ONE bank OR individual should be bailed out for making poor business decisions. If this occurs (as it has) it shows that we are not a truly Capitalistic society, rather one that privatizes gains, and socializes losses. In order to succeed as a Capitalistic society, we MUST allow individuals and firms to FAIL, and reward those that made smart business decisions. This is the essence of “Creative Destruction.” I am so tired of this blame game…….at the end of the day, no one put a gun to someone’s head and told them to “buy this” or “invest in that”…..they did it to themselves. We ALL need to look in the mirror!

  6. Rapacious Greed Reveals Banking’s Global Confidence Scheme « Your Mortgage or Your Life… Says:

    […] Rapacious Greed Reveals Banking’s Global Confidence Scheme By Guest Author RocketOne […]

  7. rocketone Says:

    I’m puzzled ? Are you laughing at my take on banks, or the fact the banks have stitched everyone else up.

    Perhaps you are from a bank and think the whole banking scam is a great laugh for the banks.

    Let me know ?

  8. George Says:

    😆

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