Banks.

[tec0]

So basically when I apply for a home loan all my finances are being looked at and scrutinised, all my assets is then translated as “financial stability� so if I can’t pay I stand to lose it all. But the bank puts nothing up. Basically they just pay the current owner with thin air! Because the “money� was created when I applied for the loan!

I am stupefied really... So when we work on low risk the banks work on no risk and they take money from us in the form of bank charges and interests on our loans not to mention inflation that is all basically created by them?

This can’t be... can it? When I look at my living cost it is said you lose 40 cents of every R1 on tax and its many faces. But now thanks to Eskom we are looking to lose even more because the actual COST will increase by a possible 43% So basically I as a person only urn about 20 cents of every R1 but the bank only have to keep 10% of my 20 cents as physical collateral thus I actually have less than that then comes all the charges and everything else. No wonder we are in a bloody recession! The system is self-defeating thus impossible to keep what you have!

Now if this system is indeed “designed� to work that way then what the hell are we using banks for? Will it not be better to translate your wealth into something more physical like gold coins or even certified diamonds? But even then you stand to lose...

Slaves to the system just got a new meaning in my books. Or I am missing a few details...

[sgafc]

Thats why its better to be self employed. "You Earn Money Before You Pay Tax" An employee pays tax before they EARN it."

Self employed people also have substantial room to play around with to claim Vat back, and reduce taxes. Not for the employed person(no matter how much they earn)

But all of us remain victims of a wicked banking system...

[Frankincense]

"Actually they make the money out of the margin between what they pay out and what they reap in just like any other business. It's just their commodity is predominantly other people's money. "

No......we take a little of others money, and may turn it into much more by borrowing it out and recieving it back again (FRACTIONAL RESERVE LENDING)...Basil I & II

This is not an ethical business, nor is there anything "normal" about it. Yes banks have outflows, but fractional reserve creation of funds really does cover the expences...lol..... [see inflation 101 in post #9 ]

Indeed Sgafc:"... all of us remain victims of a wicked banking system..."

[sgafc]

What is inflation? Economics 1, defines it as too much money chasing too little goods and services....really?

I would say Too, many goods and services chasing money(that the banksters first created out of nothing, and sucked out of the system), now there is not enough money to pay for the goods and services.

I recall in the various "drought periods", 1984, 1991 and 1997, how the supermarkets were packed to capacity, and overflowing, with vegetables and fruit. I see business people every day, with an abundance of services and goods to sell, but there is NO market(read money) for their goods and services.
Whether you agree with me or not...something doesnt add up???

[tec0]

True, more shops are closing because of “lack of business� and not just “bad service� as some may think. When one look at South Africa you will find that we are unique because jobs are controlled by industry and heavy industry. Commercial profits are based on industrial profits. The more work there is the more money there is... “That kind of scenario�.

Now big companies don’t improve the lives of the general population thus we see a picture of labour abuse, and few “training opportunities� and I will not even mention the politics that is involved. How can we reach financial stability if there is no planning for development? Fact is in trying times the tax could have been more “lenient� and more importantly the banks could have been more “responsible� when it comes to “repossessing� things like cars, houses and that kind of thing.

How can you possibly stand a chance to pay the bank back if they take your transport and basically by doing that you lose your ability to work and earn money...? Now I know you get lot people that want to take chances and take what they can get. But making everyone guilty by association is not helping the economy or the clients that IS actually trying to pay the bank its money...

Banks must realise that “job security� is a thing of the past...

[Frankincense]

Yeah, Bankers have always calculated who should remain employed and who shouldn't based on benefits....also for how long would a depression (mass unemployment) benefit them if sustained....If Bankers decide to drop a specific bank to it's knees, then shame, the staff are jobless....but at least they get to buy the bank and take it over at a song...this has been done so often....business as usual for bankers...human capital and job security are variables one plays with to maximise control and profit....

[tec0]

I think you might have misunderstood my post. What I was pointing at is the fact that some people do try and keep their payments up but despite their efforts the banks still decide “take” the property and sell it at a massif loss. Now once the property is sold at a loss the bank will still keep the person whose property was taken and sold liable for the “outstanding amount” So not only did the person lose their property they still owe the bank money.

Now let’s say that this piece of property is a car. Now with the car the person was still able to pay back “an amount of money” but without it, this person can no longer work thus “no money” for the bank and a los for both the bank and the person involved.

Now if the bank acted responsibly and “negotiated” payments and allow the person to keep the car then that person would be able to work and pay them back. Thus the bank “don’t lose money” where as “flogging at auction” they only get 15% to 30% of its actual value.

But in all honesty I don’t just blame the banks for our problems. Fact is if we had proper public transport most people will not need a car to get to and from work. I think our government can ease up on the car manufacturers and the car manufactures can drop their prices by 15% to 20% on “entry-level cars” Thus affordability becomes a reality once more.

[Frankincense]

On the contrary, totally understood your post. Just wanted to fast forward it a bit....

"Now if the bank acted responsibly and ...blah blah blah"

Bankers have never been responsable. We should all by now be familiar with the History of Banking, and thus understand these basic realities in order to move on.

It's great to see people suggesting things they believe would make the world a better place, and what Bankers should do....but a Leopard never changes it's spots, until it's skinned....

"But in all honesty I don’t just blame the banks for our problems."
I don't blame the Banks either, after all, they're just buildings filled with thousands of ant people doing what they're told....I blame the international Bankers who own the Banks, Car manufacturing firms, most of the developing World Governments from the IMF loans they issued, most of the Weapons manufacturers, Petroleum companies....and the list is endless...thier plans suck, but will be rolled out.

Can't wait to see this Leopard skinned alive!

[tec0]

Well then maybe it is time to see we can work around banks. Impossible right... wrong, see before investments groups like Old-Mutual the banks was the only way to invest money. But with investment groups like Old-Mutual banks had competition but not for long because these investment groups are now basically just an extension of the banks.

However it was possible for groups like Old-Mutual to form and actually be competitive... Thus this shows you that it is possible to create your own investment group that can act as a “private� banking system. This “investment group� can then grow stronger because by negotiations you can manipulate other small companies to join the group and then benefit from a guaranteed clientele. In return they invest in the “group� and make use of their services.

It will take some doing and a hell of a lot of money but it is not impossible and best of all your wealth is yours again... Cut the bank out of the loop and they will crash. Just a bit of useless info have a look at how Netbank was formed...

[sgafc]

Turning to investing with banks... Saving, be it investments such as Fixed Deposits, call accounts/32day Notice Accounts, used to be encouraged by myself. But I see many clients complaining about their returns/interest.

Remember the yardstick we all used for the sustainabilty of investing/opening a business, ie" If the profits are less than the interest rate yield of a bank, I will rather invest my money with a bank". Guess what, despite the recession many(apart from the struggling ones)businesses returns today, are higher than the returns of bank accounts.

32day Accounts, yield low returns. Saving accounts, interest on credit balances have evaporated, and in some cases can be as low as 1c.Ever calculated the "charges" and admin fees on banks investment products? Ever lost sums in an investment account, due to the bank transferring it to another overdrawn account, held at the same bank.(without your consent)

1. All banks provide bad service, in return for high bank charges.
2. In todays climate, they rarely finance business, provide loans, and if they do interest and charges are excessive.
3. They cannot pay us a decent return on our investments.

Face it, bank accounts is just a convenient conduit, for our salaries, income and expenses. Thats what we should use banks for.

For financing and investing,other alternatives needs to be explored urgently.