Unintended TARP Victims

Discussion in 'Economy' started by Skull Pilot, Feb 11, 2009.

  1. Skull Pilot
    Offline

    Skull Pilot Platinum Member

    Joined:
    Nov 17, 2007
    Messages:
    31,793
    Thanks Received:
    4,496
    Trophy Points:
    1,130
    Ratings:
    +10,087
    It seems that in it's rush to save us all from certain annihilation the brain trust that is the federal government can add more responsible businesses and citizens to their shakedown list.

    Even though many banks have come through the housing bubble in excellent financial shape with negligible rises in foreclosures due to sound lending practices, these same fiscally responsible institutions are seeing a quadrupling of their FDIC insurance premiums for no other reason that the government needs cash to continue the bail out of irresponsible banks and businesses.

    Obama's First 100 Days - Wall Street Journal

    Executives at Alpine are frustrated that the cost of their FDIC insurance is increasing to close to $1 million this year from $250,000 last year, to help replenish the government funds that are being used to guarantee deposits in failed banks.

    Alpine Bank, with 14 full-service branches, is the Rockford area’s leading mortgage lender. It services about $660 million in mortgage loans, out of a total portfolio of just under $1 billion. But despite Rockford’s climbing unemployment rate, which has reached 12.5%, the bank’s default and past-due rate on its 7,200 mortgage loans has risen only slightly, to less than 0.3%. That’s much less trouble than lenders are experiencing nationwide.


    How many more banks like Alpine, you know good solid local banks that actually serve their communities, are getting squeezed by the government?

    And the sad part is that the government will keep squeezing until the only banks left are the ones that they bailed out and now own.

    Tell me how that is "good for America"?
     
    • Thank You! Thank You! x 1
  2. RodISHI
    Offline

    RodISHI Gold Member

    Joined:
    Nov 29, 2008
    Messages:
    10,392
    Thanks Received:
    1,858
    Trophy Points:
    280
    Ratings:
    +5,047
    I suppose the small banks are now in the same situation many small businesses have already faced when larger corporate businesses were preferred over them.

    I can't say this is a good thing at the moment Skull but like any else where people have stood for justice and equality and the others did not stand with them, they were next in line for the hachet job.

    Comes down to that old saying, "we are all in this together."
     
  3. Kevin_Kennedy
    Offline

    Kevin_Kennedy Defend Liberty

    Joined:
    Aug 27, 2008
    Messages:
    17,590
    Thanks Received:
    1,581
    Trophy Points:
    205
    Location:
    Ohio
    Ratings:
    +2,027
    This sets a precedent that it's better to fail than it is to succeed in the government's eyes. The government needs to wise up.
     
  4. RodISHI
    Offline

    RodISHI Gold Member

    Joined:
    Nov 29, 2008
    Messages:
    10,392
    Thanks Received:
    1,858
    Trophy Points:
    280
    Ratings:
    +5,047
    Looks like the little guy is paying for what the few gambled on.

    This quote is from a running article.
    What Cooked the World's Economy?
     

Share This Page