This is a Crusade to Stop Financial Institutions From Bullying Us

I always thought I had a pretty good understanding of banks and how they work – but only after doing some in depth investigation into banking practices have I realised that my former knowledge barely scratched the surface of what really goes on behind those big ornate doors!

The catalyst to my investigations was the financial crisis/meltdown that we faced in 2008 and beyond.

What I could not fathom was how the banks could be in so much trouble yet CEO’s, who should have been held responsible, were handed golden handshakes in the form of huge bonuses, astronomical pensions and sent off to their luxurious homes to enjoy the ‘fruits’ of their labour.

Governments had bailed them out using taxpayer’s money – that’s our money folks!

And at the end of the day we were the ones that were worse off – through no fault of our own!

This is how I thought banks work.

  • They take an investor’s money and offer him a return.  For the sake of this example let’s say that is 6% per annum.
  • The return is based on the length of the investment; longer term investments attracting more interest than shorter. Reason being the bank knows it will have this money for the said length of time.
  • If the investor withdraws before the end of the period he/she is penalised. That’s right folks they penalise you for wanting your own money back.
  • The investor’s funds are then used as security with the Federal Reserve for the banks to receive a line of credit far in excess (usually 10 times the amount) of the money actually held.
  • This line of credit is then lent to borrowers at a rate far higher than that paid to the investor – say 8% for this example.
  • The $100,000.00 invested @6% per annum creates a line of credit of $1,000,000.00 (one million!) which is lent out at 8% per annum
  • Nice line of work.  The bank pays $6,000.00 per year in interest but in return receives $80,000.00

Immoral?  Theft? … Despicable? …
Or …
ALL OF THE ABOVE?

It gets even worse

To borrow part of that million dollars a customer signs a promissory note to repay the loan – such as when you take out a mortgage.

Now the bank crank it up a notch or two and take that promissory note and repeat the process; using the note as a further line of credit and so on. Eventually the investor’s $100,000.00, and the subsequent notes to cover the $1,000,000.00 worth of loans created by it, generates an enormous amount of money that the bank hasn’t even got but earns a fortune on.

This site is here to help the little guy (that’s you and me) fight against the banks and money lenders when they start using bullying tactics.

Fortunately for us:

  • There is legislation in place to help us
  • There are laws governing all aspects of mortgages, loans, debt collection and similar financial transactions
  • The laws have become so muddy that the banks simply ignore them, or aren’t even aware of them, resulting fraudulent practices

I’m in your corner and my aim is to see that you get a fair deal and the Fat Cats get a bit less!

Here’s a video that explains how these people work with your money and no risk to themselves.