Thursday, October 13, 2011

Why people are protesting on Wall Street.



One of the reasons people are mad at the banks is something called "mortgage crisis".

People in the past used to buy houses because it was a very safe investment. Banks would allow people to borrow money from them because it was very safe and It was very rare that someone would not pay the bank back. The banks would charge a low interest rate because it made a lot of money, but the loan would be for up to 30 years.

Then, someone started selling mortgages. Lets pretend that you have $5 and I don't have any money but I want to buy lunch. I borrow the $5 from you and promise that for everyday that I don't pay you back, I will owe you an additional $2. You know I won't pay you back for two days, so you know you will get an additional $4 from me. Instead of waiting for me to pay you back, you tell Mike that I owe you $5. So you tell Mike that if he gives you $7, then you would sell him my debt. So Mike agrees and gives you $7. Now I owe Mike $9 after two days. So you make $2, Mike makes $2, and I get lunch.

You are making a lot of money doing this, so you do this a lot. You let people borrow money off you and sell their debts to other people. People are paying off their debts so everyone is making money except for the people paying, but they get a house.

This is making you so much money that you start letting people with no jobs or source of income borrow money too. These people have no chance of paying you back because they have no job. So the people you sell this persons debt to will not be getting paid because the person that owes them money has no job.

The banks let people borrow money who had no way of paying them back, then went on Wall Street and started selling these mortgages for a lot of money claiming that they were "safe". People couldn't pay their mortgages so they lost their houses and the people who bought the mortgages lost their money, but the banks still made money.

Basically, the people who took mortgages out shouldn't have taken out mortgages they couldn't pay back and the people who bought the mortgages should have done better research on what they were buying. You could blame anyone but the banks are the ones who didn't lose much and got bailed out.



   

13 comments:

  1. Why are they not mad at the government for over-protecting the banks and leading to "moral hazard", and thus more bad decision making.

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  2. The Federal Bank and IMF are owned by a private entity which goes back to the days of Hitler...German War criminals were funded by American banks and infiltrated their way back into American society after the war and are still there to this day. research Rothschilds and become informed with facts that go back hundreds of years and play an important part to a plan the Illuminati have for the population of the earth. with their New World Order. NWO. You tube is an excellent source to start researching.

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  3. rothschilds and rockefellers. . .the demise of this country and the world.

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  4. So are they part of the Tea Party? They believe in the same thing, that bailouts were a bad thing. But I heard they oppose the Tea Party. This whole thing is so confusing. Nobody knows what they really want. They have no direction except to voice their anger about how things went down. Banks got more strict with how they give mortgages and loans so this has been rectified. Not sure about the goal here.

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  5. The Occupy movement IS mad at the government for not regulating banking. Congress and the Supreme Court and the President do not push for intelligent banking regulations, because the banks are paying for their campaigns. Supreme Court members depend on bankrolled politicians to get appointed. Most of the conservative Supreme Court members were appointed specifically to be friendly to banking and corporate interests first -- not the public interest.

    Goldman Sachs gave a LOT of money to Barack Obama -- I cannot recall the figure, but I think it was more than $1 million. That's just one example.

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  6. the imf, world bank, reteurs and all the federals banks of the all the banks around the world are owned by the elite and are controlled by the rothschild family. they want to rule the world, this is all part of their plan. to make everyone slaves. in a way we are cause we borrow money from them. that is why gaddafi is dead, libya was debt free under his rule. now they are going to borrow like everyone.

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  7. Replies
    1. Nonsense. RE taxes are a result of property values, not public unions. Public unions are a result of state and municipal government being a crappy employer.

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  8. The Occupy Movement is mad at the government but thinks MORE government control is the answer.

    The Tea Party is mad at the government but think LESS government control is the answer.

    That's...essentially what I get from it, anyway.

    I personally think they're both right and both wrong about various things...I've spent a lot of time trying to figure out whether or not there is truly a cohesive stance on either side.

    I've come to the conclusion that just because neither side comes off as perfectly clear, doesn't mean that they don't know why they're angry. It just means that it's a complicated issue and your avg. Joe-on-the-street may not be as savvy about how to present views clearly in a soundbite for a news segment (BOTH sides; not picking on anyone here...)

    Also, in political discussions, both sides can be defensive, sizing up the person asking them their opinions before they answer...this is rarely productive.

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  9. Occupiers don't want MORE government, they want government to stop selling out its constituents to corporations. They want the government to act on the behalf the people, and not big money corporations. The way it is now, big money is getting bigger, and we the people are getting poorer.

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  10. Somewhat correct about who is at fault on the mortgage crises, I was pitched and lied to at length with all the reasons I should "get my money working" by pulling it out of my long ago paid for home and investing it with one of their coligues' firms which then crashed further en richening the realtors, attorneys and banks by putting its vast assets up for sale.
    Millions were also duped into selling their homes so they could have a nicer one and refinance later as they were then doing. they now are homeless and with bad credit insuring they'll probably not ever own a home again so at best rent one of the repossessed homes the banks own. Slick HUH!

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  11. USA been bankrupt since 1871and in trusteeship since1933,all USA private property , fed lands outself and our children are owed by the international banker for payment of civil war debt plus debt incurred after the Great Depression

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