Banks and the Federal reserve. Not giving home owners a break with lower home loans *Consumer info
Yes, we have heard many times in the past 1.5 years of the Federal Reserve lowering the rates. If my memory is correct, I think 8 times they have lowered the rate.
I had a friend tell me that they are lowering the "SHORT TERM" rates. My friend tells me that the "SHORT TERM" rates are linked up to loans to help people go out and spend more money.
In other words, they are saying:
We want you all to go out and get in to debt RIGHT NOW !!!! Spend, spend Help the big companies get your money. They are telling you to BLOW UP your credit card, Buy a big TV, Just spend it all. Stay in debt. Move your money out of your checking account and into theirs.
What they are not willing to do is lower the interest that is linked up to home loans.
Posted on the Internet they say: The rate cut, the ninth this year, is aimed at getting consumers and businesses - whose confidence has been badly shaken by the Sept. 11 attacks - to spend and invest to keep the economy from becoming even weaker.
If they want us to spend, We have to have the money to spend. I, say to the Federal Reserve, after Passing on some lower rates to the banks, MAKE !!! the banks pass on the savings to us so we can RE FINANCE our homes. For us to spend more, we need a lower house payment.
For many years banks have not been willing to pass any savings to their customers. Just like your local car dealer. They get you to sign a car buying contract with a high interest rate and after you go home, they look for a lower rate, but not willing to past the savings on to the buyer. They have the bank send them the savings in the form of a FAT CHECK !! This is called BACKEND GROSS. The next time you buy a car ask the Finance manager to see the "GROSS SHEET that is in the deal jacket and you will know what I am talking about.
Just look at your car buying contract. No where does it tell you who you will be sending your payments to. They, the car dealers do not tell you at first, because they are taking a shot gun to your credit so they can find a bank that will give the car dealer what is called a "LOW BUY RATE" and they The car dealer will NEVER GIVE you the buyer that rate. Just like your banks that lend you money to buy a home. They hide the "BACKEND GROSS"
This backend gross "Hidden profit" is never revealed to any consumer. Remember that a good bit of your payment is a big part of their PROFIT !!!
2 Updates & Rebuttals
David
Pocomoke,Maryland,
U.S.A.
Both of you people are off
#3Consumer Comment
Sun, February 01, 2009
First, interest rates on home loans are the lowest they've ever been. Under 5% on a 30 year fixed. There are many programs available that will allow you to refinance your loan.
With regards to the Fed, it will not collapse, it goes hand in hand with Treasury Department. It is NOT "owned" by banks. Banks give up certain amounts of stock to be a member of the Fed.
And if you knew anything, you'd know that "the banks are going to take over all of us" are much closer to the brink of collapse than most people realize. In my personal opinion, there is only one big bank that will still be around in a year.
James
Orem,Utah,
U.S.A.
Federal Reserve itself is the biggest ripoff in history
#3Consumer Comment
Sat, January 24, 2004
The author of this report is missing the larger ripoff.
The Federal Reserve is not a government agency. It is owned by large banks. It is allowed by law to create nearly all the US money in existence, as loans to the consumer. Trillions of loan dollars, created by a private company.
The fractional reserve policy allows banks to create money from nothing, using very little in deposits for backing. This means you borrowed non-existent money, which is backed by real assets and which you have to pay from real labor. Now there is one heckuva ripoff.
Someday this ripoff will collapse and implode, but who knows when. I expect that then the banks will own everything, as the unpayable loans are called.
Just my humble opinion.