• Please be aware we've switched the forums to their own URL. (again) You'll find the new website address to be www.steelernationforum.com Thanks
  • Please clear your private messages. Your inbox is close to being full.

We are in serious trouble. The banks.

Coach said:
And what do you know? I had a series 7 and 63. Something tells me you have nothing but a high school education ...
Click to expand...

But I was in Mr. Potter's class. You know, the "gifted" program.

278208__97883.1519238297.500.500.jpg


I'm the black guy.
 
Coach said:
No, it's not normal. As they say, follow the money. The Fed can keep giving the banks 100+ billion a week to cover themselves for a finite amount of time. Sooner or later, you'll get horrible inflation.

Mechanical engineering? You remind me of the 2nd mechanic in Fletch. You must have studied ball bearings. Interesting poster name. I'd say you have more in common with the very poor Steeler WR than the famous scientists.

I suggest you read the finial news or magazines.

https://fortune.com/2019/09/26/the-...er-problems-that-are-getting-worse-over-time/
Click to expand...
Waiting for the crash you predicted, you clown.
 
Coach said:
Interest rates have been low for years. 15 years ago I used to get 4% interest in my Smith Barney money account. Those days are gone.
Click to expand...


That's why I opened an annuity with a guaranteed interest rate of no lower than 4%. ALWAYS getting nice returns on that compounded interest!
 
CharlesDavenport said:
Waiting for the crash you predicted, you clown.
Click to expand...

Give it time numbnuts, and we'll see if the banks still need billions every week to keep themselves above water. I never said it would happen now, just that we are in trouble if the trend continues.
 
Coach said:
Interest rates have gone up under Trump. They were very low under Obama. But the world economy isn't doing well right now I don't think we can afford higher interest rates at his point in time.
Click to expand...

There is a fallacy that lower interest rates are needed to boost the economy. That is a democrat view of looking at things because low interest rates allow governments to borrow money to prop up their economies. That printing money boost the economy. Since the mid-90's this view has taken over world economies. China manipulates its currency and interest rates and the rest of world is following suit.

It's all unhealthy.

I ask this all the time "How are Banks making money?" and no one seems to have a good answer. How can banks have CEO's making $25 million/year and act like they are Pharmaceutical Companies or Energy Companies with revenue? What revenue? What are they making, producing, selling or providing? What are their goods and services rendered?

I certainly understand how Banks have the power of the purse strings. I understand where their POWER comes from. I don't understand where their revenue is coming from.

Even as recently as most of Bush's tenure Fed rates were 4-5%. Interest rates on home buying and long term loans was 5-6%. That's not making 8% on the energy sector like Exxon or 12% on revenue in the Pharmaceutical Business, but it's a good return on investment and it's steady, year after year after year. Combined with fees and services, Banks could easily show stockholders decent returns of 8-10% yearly.

How is that possibly now with fed rates of 0-2% and interest rates on home buying 3-4%? It's not. It just can't be without some big conspiracy and shell game going on that everyone in power (Banks, Politicians, Big Businesses) knows about and is looking the other way.

I'm convinced that the great recession wasn't caused by Banks cheating the system but by the fact the fed rate got too low that greed pushed the Banks into bad business practices and everyone looked the other way because every other business had fat cats too.

I honestly don't know how to fix it because if you don't let Banks make a decent interest rate on the money they hold and lend, then they will continue to find sketchy ways to make money other ways, which almost ALWAYS ends up hurting our economy and leads to a recession.
 
deljzc said:
There is a fallacy that lower interest rates are needed to boost the economy. That is a democrat view of looking at things because low interest rates allow governments to borrow money to prop up their economies. That printing money boost the economy. Since the mid-90's this view has taken over world economies. China manipulates its currency and interest rates and the rest of world is following suit.

It's all unhealthy.

I ask this all the time "How are Banks making money?" and no one seems to have a good answer. How can banks have CEO's making $25 million/year and act like they are Pharmaceutical Companies or Energy Companies with revenue? What revenue? What are they making, producing, selling or providing? What are their goods and services rendered?

I certainly understand how Banks have the power of the purse strings. I understand where their POWER comes from. I don't understand where their revenue is coming from.

Even as recently as most of Bush's tenure Fed rates were 4-5%. Interest rates on home buying and long term loans was 5-6%. That's not making 8% on the energy sector like Exxon or 12% on revenue in the Pharmaceutical Business, but it's a good return on investment and it's steady, year after year after year. Combined with fees and services, Banks could easily show stockholders decent returns of 8-10% yearly.

How is that possibly now with fed rates of 0-2% and interest rates on home buying 3-4%? It's not. It just can't be without some big conspiracy and shell game going on that everyone in power (Banks, Politicians, Big Businesses) knows about and is looking the other way.

I'm convinced that the great recession wasn't caused by Banks cheating the system but by the fact the fed rate got too low that greed pushed the Banks into bad business practices and everyone looked the other way because every other business had fat cats too.

I honestly don't know how to fix it because if you don't let Banks make a decent interest rate on the money they hold and lend, then they will continue to find sketchy ways to make money other ways, which almost ALWAYS ends up hurting our economy and leads to a recession.
Click to expand...

How are the banks making money you ask? They control money and lend out money at a higher rate by charging interest. Well over 85% of people don't have the cash to buy a house or car in full, hence they need a loan from the bank. Banks borrow money from the FED at a cheaper rate than anyone can get it if needed to cover themselves for a short period of time. It business goes bad ( Too many bad loans go unpaid ) no problem, Uncle Sam says they are too big to fail and bails them out! In other words the tax payers ( us ) cover the banks mistakes for them for FREE. What a business to be in, not even the bookies can cover themselves this well.


Interest rates better not get too high; otherwise, people will borrow and spend less, and the economy will slow down.
 
Last edited:
Coach said:
Give it time numbnuts, and we'll see if the banks still need billions every week to keep themselves above water. I never said it would happen now, just that we are in trouble if the trend continues.
Click to expand...

You said this, dramaclown -
this is serious... If the next week is more of the same, a crash is coming.
Click to expand...

It happened again, and we are still here! You are like a global warmist. Your prediction is never wrong even though it's constantly proven wrong. What happened, did you just watch The Big Short and run across an article? LOL.
 
CharlesDavenport said:
You said this, dramaclown -

It happened again, and we are still here! You are like a global warmist. Your prediction is never wrong even though it's constantly proven wrong. What happened, did you just watch The Big Short and run across an article? LOL.
Click to expand...
Chas 1
Cooch 0

Sent from my SM-N950W using Steeler Nation mobile app
 
deljzc said:
I ask this all the time "How are Banks making money?" and no one seems to have a good answer. How can banks have CEO's making $25 million/year and act like they are Pharmaceutical Companies or Energy Companies with revenue? What revenue? What are they making, producing, selling or providing? What are their goods and services rendered?
Click to expand...

Banks still make money-making loans by the billions for mortgages, personal loans, credit card interest, account maintenance fees, etc.

  • Bank Of America gross profit for the quarter ending June 30, 2019 was $23.084B, a 2.37% increase year-over-year.
  • Bank Of America gross profit for the twelve months ending June 30, 2019 was $91.716B, a 4.35% increase year-over-year.
  • Bank Of America annual gross profit for 2018 was $91.247B, a 4.46% increase from 2017.
  • Bank Of America annual gross profit for 2017 was $87.352B, a 4.36% increase from 2016.
  • Bank Of America annual gross profit for 2016 was $83.701B, a 0.89% increase from 2015.
https://www.macrotrends.net/stocks/charts/BAC/bank-of-america/gross-profit

That's billion, with a "B." Banks are doing just fine, thank you.
 
You must log in or register to reply here.
Top