How Banks and Financial Instittions Put you in Debt

A bank or financial institution is similar to a mafia loan shark business. They loan out money to people who are in need of some quick cash. However, the mafia still has some class, while a bank will harass you to no end if you stop paying on a loan or fall behind. Only then do you wish you went to the mob instead, so that hitman would just go ahead  and save the headaches.

In all seriousness, a bank is in the business to turn money into more money. A bank has the power to lend ten times what it holds in its reserve. A bank with 100 million dollars in the bank vault can legally loan out 10 times that much, which is one billion dollars.

Due to this ridiculous rule, banks want to hand out as many loans as possible and apply interest rates that amount to extortion. One of the reasons the United States economy is so bad is due to 90% of a bank’s loans come from money that does not exist. It only exists in the form of payments on debt from loans. When people began having trouble paying back loans, the federal government bailed banks out by printing more money, that in actuality doesn’t exist.

The US currency is not backed by gold or a tangible asset. The currency is based on debtors paying back loans. If a debtor cannot pay back the loan, then it goes into default and the bank loses money, you lose that credit score, and the national debt rises. The bank may then try to get part of the money through court by garnishing your wages. This is a part of the bankruptcy process.

Bankers tell you to take that $50,000 and improve your house because they use an arbitrary number, your credit score, and determine you will pay it back within a designated period of time. The bank cannot, however, take into account medical emergencies, lost jobs, or other factors that affect someone’s ability to pay back their debt.

The worst part of taking out a loan and being in debt is that a large portion that you pay back is just the interest tacked onto the loan. That is the bank’s “fee” for loaning you money. Interest rates are artificially high at banks; covering inflation, salaries, overhead, and the rest resulting in extremely high profits. As soon as someone deposits another $1000 into that hundred million dollar bank, the bank is in a rush to loan out ten times that much or $10,000.

This repetitive cycle keeps the bank profits rising depending on debtors paying back loans. A bank will lure the person in need of a loan how the payments will be low with low interest rates, but faily to inform the taker of the loan that the bank can change whatever rules or rates they want, whenever they want. The bank literally has the power to crush and destroy lives financially.

A financial institution that bribes its way into convincing you that you need that money is a carefully crafted “I am your friend” ploy. It an experience most Americans have at some point in time. The bank is not your friend. The bank is merely a mafia scam on people to drive them into the hole of debt. When the bank fails because they cannot get debtors to pay back their loans, they go for your assets. Whatever is leftover becomes national debt. Debt is a circle of lies and deceit that just add to the national debt.