Banking Foreclosures

Here is something for you to think about today. As we all know, there are a lot of houses that have been foreclosed on, and there will probably be more on the way for the next several years. These foreclosed houses are owned by the bank now. The bailout which happened a couple of years ago, was supposed to be used with the intention of allowing banks to stay in business and to have money to lend (the key operative word being "lend"). This however, obviously, is not the case. I will now present to you my 'conspiracy theory'.

I think that greed in the banking system is beyond outrageous. Not only have they held on to the bailout money, but they are holding out on letting the money flow, so that they will be able to receive the highest dividends in the market. He who controls the money also controls the flow. They can influence the rise and fall of stocks by who and how much they lend to. This is their first source of income. The second source of inome, which I believe will come within the next 2-5 years (based on who gets elected into office), will be from the housing market. They have done a lot to own America, literally. (on a side note, I can only hope that our banks are not run by foreign interests). I believe that when the time is right, and they have the person they want in power (presidentially), they will start lending money again, and selling houses. They will not only make a ton of money on the interest from the loans, but they also own the houses, so it is a MAJOR win win for them. Because the banks stand to make so much money in the long run, it will not hurt them to lose a couple of dollars foreclosing on your house. Especially if your house has equity built up.

Too bad the Republicans have not wakened to the idea that regulations are essential to the growth of America. They believe that the free market will take care of itself, and unfortunately, they are right. I believe small business owners, have the hardest regulations on them, the smallest tax breaks, and the lowest backing by our government, while large industry/corporations/banks, have the most lenient regulations, highest tax breaks, and highest levels of government backing. I am hoping to come out with a rough draft of a tax plan one day (don't hold your breath though), that I think will fix the problems with the economy, once and for all.