Saturday, August 5, 2017

Banks are no longer necessary as most are only interested in buying back their shares to fuel the 1%

The 2016 Presidential election was a culmination of the elite (Banks and government) failing to heed the warning signs of the people following the fraud and corruption that helped create the 2008 financial crisis.


It started in 2009 with the Occupy Wall Street movement, and then was followed soon after by the advent of the T.E.A. Party.  Then in 2012 the Ron Paul Revolution nearly brought a libertarian to the White House, except that the country wasn't quite ready to overcome the financial and political machines that control elections.

And yet the election of Donald Trump still hasn't shown itself to be enough to change the mindset, and scare either Congress and Wall Street.  And while tens of millions of Americans sit on the sidelines hoping that The Donald will keep his word and change the way the corrupt systems perform, in the meantime the the banks continue to do as they always have, and are using the cheap money the Fed is offering to buy back their shares to the detriment of businesses begging for capital to try to Make America Great Again.

Apparently the Banks have been lobbying heavily, and expending significant amounts of money again, leaning on their Congressmen and pressuring regulators, saying that their capital standards need to be relaxed so that they can make more loans to stimulate economic growth. 
But that, according to the FDIC Vice-Chairman, is utter nonsense. 
"Hoenig, who was a high-ranking Federal Reserve official during the crisis, cautioned Senate Banking Committee Chairman Mike Crapo and the committee's senior Democrat, Sherrod Brown, "against relaxing current capital requirements and allowing the largest banks to increase their already highly leveraged positions." 
Using public data to analyze the 10 largest bank holding companies, Hoenig found they will distribute more than 100 percent of the current year's earnings to investors, which could have supported to $537 billion in new loans. 
On an annualized basis they will distribute 99 percent of net income, he added. 
He added that if banks kept their share buybacks, totaling $83 billion, then under current capital rules they could boost commercial and consumer loans by $741.5 billion. 
'While distributing all of today’s income to shareholders may be received well in the short run, it can undermine their future returns and weaken the growth outlook for the larger economy,' he wrote." 
The Banks are spending a substantial amount of their current income on dividends to shareholders and very large stock buyback programs designed to increase their share prices. - Jessie Crossroads Cafe
If banks no longer feel it is their obligation to provide loans to businesses to grow the economy in the land that provides them so many benefits, then it is time that the American people no longer use these institutions for any and all transactions, especially since the private sector has created numerous platforms which now allow one to monetarily function without the fear of a bank bail-in, and as an opportunity to rebel against the 1% where it hurts the most.

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