This is something that seems quite clear to me. If you make a great deal of money, doesn't it make sense then that you should pay a great deal more than your average person in taxes? For Multi-Billion dollar corporations this is not the case.
Chew on this, we have bought citibank and Bank of America. The tax payers, with their bailout for the large banks essentially bought these banks in the idea that it would benefit the public good; in citi's case, with 25 billion in bailout money we bought them twice. However both of these banks have holdings in the Cayman Islands where the funnel most of their money so that it can sit, untaxed by Uncle Sam. We own these damn banks and they have the audacity to hide money from us?
In lies the essential problem that permeates the banking world, GREED. Even after we save their asses from utter destruction they still are to greedy to finally open their books and be honest and upfront with the people who helped them out. And now even after the bailout, banks are raising credit rates, foreclosing on homes and generally giving the ol' middle finger to the American people.
In the title I wrote "simple math" and the reason for this ties in to the idea of the greed of these banks. With this home ownership crisis there are two options for a bank either foreclose or modify these loans that they knew were destined to fail. Option one, foreclosure, essentially means the bank will for sure take a loss after closing costs, auction costs and legal fees to complete the foreclosure. There is however another option, loan modification. For example if a bank would simply renegotiate the payment plan of a loan, they could get not only the full amount owed plus interest, but their could get much more than the house is actually worth, at no loss to their institution. This could be done in so many different ways, like simply knocking 50k off a 400k loan which more often than not would still garner the bank, wait get this, A GAIN!!!
This however is where it all breaks down. Greed it seems has trumped the idea of an American Spirit or a shared destiny. No longer are we in the days of helping ones neighbor, instead we seek to covet where he poses. Excuse me for being a little preachy here, but damn where will it end...?
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2 comments:
Wait, wait, wait: since when is greed such a bad thing? You weren't complaining in the '94-'99 and '03-'07 bull market runs about greed, tax-shelters and general bankery. Nobody was. Now, everyone wants to point the collective finger at the banks and say "hey, that guy, you screwed us." Give me a break.
The American ethos has always been about coveting what is not yet possessed. Lacking in the religious freedom department? Leave England and go to America! Renting a condo when your college buddy owns a home? Buy a home! Want more farmland? Kick off the Indians and move west, sonny!
Sure, blame the banks. The banks don't care: after all, they contribute to almost 40% of the GDP.
No, blame yourself. America gorged on easy money and is now paying the consequences. In most cases (and I stress most), mortgages and loans were properly handled. So much for the responsibility implicit in "buyer beware..."
But its not 94 and its not 03. Things are very much different. For example these banks that you speak so highly of, and are living the american dream, are not their own anymore. Regardless of what they have done in the past, they fucked up enough to have to be bought by the American People. For me this ends their ability to hide assets, fuck up loans, and general screw over the American people.
Do you see this? We own these banks, we saved them from utter destruction and they are still not willing to turn around and make the moves neccesary to save bad loans and make things right again. This is where I have a problem, and where I see things like hiding assets as a slap in the face.
Banking, whether you want to believe it or not, is not the same anymore. They cannot continue, as evident by this so called crisis, to do busniess as usual. They owe us, over 50 billion times over they owe us. I refuse to believe that someone can get help and then turn around to the very person that helped them and spit in their face.
If Banking is as you say 40% of the GDP, well then they are susposed to be more aren't they? Can you cheat on your taxes? Can I? Then why the fuck can they?
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