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.... This is where your ignorance shows. My guess is you don't even have a clue as to who or what a "Wall Streeter" is other than some fabrication in your mind. ....
I am willing to be educated out of my ignorance. What is your definition of this term and why are you defending them? Please be specific.
The remaining points you made are your opinion and you have often demonstrated here that your opinions are not based in any relevant facts as my previous dealings with you have indicated. Note that I don't need to call people dumb, stupid, etc etc. That is a hallmark of someone who doesn't have a logical argument to make. However I will give you a pass this time as I am interested in receiving an education as requested in the previous paragraph. I am sure the rest here are waiting for this too. Oh and there will be questions by the students.
Depositors should definitely vote with their feet and go to the bank that offers them the best overall package that fits their needs. If it happens to be a big bank, so be it. If it happens to be a community bank, that's fine too.
The larger problem here is that many people have nothing appreciable in the bank, but owe banks a ton of money in credit card debt. They are largely stuck because many of them are overextended, and nobody will offer them a balance transfer. These are the people who really have a problem, largely of their own making. I don't worry about people who have the option to go to whatever bank they want to, and choose to stay with a bank that doesn't offer them the best deal. That's their choice.
The only people saying that are the ones profiting from the bailouts. In otherwords, ignorant or not, the bankers have not demonstrated they are worthy of such bailouts. Second they are not being asked to endure any sacrifice in the public's eyes for running their businesses into the ground using their customer's money. Any other business they would be putting people in jail for it.
Just this week, GMAC is back asking for another $6B in bailout money. How much more do you think the public, a public that is seeing their own positions destroyed, going to to blindly accept? Huffington's blog has a very wide national readership so this won't go un-noticed and she has already gotten national media exposure to it. The bankers better start worrying this is all that will happen and woe to them if they continue to underestimate the anger towards their industry. Common sense long ago left the building.
Oh and I do agree with you to this point. If the public was really educated on what is happening with their money, they couldn't build enough jails to hold all the bankers. The wall streeters better hope the public stays ignorant of the issues.
While there was some fraudulent banking activity, much of what happened was stupidity more than outright fraud. Sometimes there is a very fine line, but jail is not the right answer for most of the people involved. Withdrawal of financial support is the right answer.
GMAC should go right down the tubes. It's an idiotic institution that deserves to fail.
I keep getting offers of cash if I open an account with Citibank, but I refuse to.
Big banks have become so much more ubiquitous in the last 10 years or so, but some people are tiring of them and going back to smaller ones. At least that's what I see, anecdotally.
I really don't see it, I see people that were already using small banks and credit unions raving about them.
The deposits at the large banks have seen consistent increases so any shift is relatively small. I suppose one way of measuring whether this is actually occurring is to compare their growth in deposits.
Quote:
Originally Posted by LeavingMA
The general trend right now is to smaller banks. The bigger banks can't touch my credit union. The local credit unions in my area are ten times better than the bigger banks.
Do you have any evidence that this is the "general trend right now"? Different banks are good for different people, I have no interest in credit unions or the small banks around here. They don't provide the level of service that I require from a bank.
This is not accurate, although credit unions and small banks have smaller advertising budgets they are also advertising to small demographic/geographic area.
You need to compare the amount of dollars spent on advertising in the geographic area or on the particular demographic that the credit union serves, not advertising budgets in general. Bank of America's advertising in Oregon does nothing to get costumers in Los Angeles to use them.
In some sense the small banks and credit unions have the advantage in advertising.
Most don't realize that today's BofA is actually NCNB (North Carolina National Bank) that got absolutely huge by acquiring other banks. ....
Whether people explicitly moved or whether their previously small bank was acquired by a larger bank is inessential. The point is that most people say 30 or more have experience with small banks. They are not in the dark here, they are using large banks because they like them.
Unlike the days of investment banking, the banks these days are required to have some reserves now. There simply aren't any more investment banks because credit markets require reserves, so if you moved your money out it actually hurts the bank by disallowing it to lend up to ~10x what its reserves are. That's our fiat money system, read up on it.
An organized movement to flood money out of large banks like Chase and Citibank and into our local community bank sounds romantic and a way of "sticking it to the man", but in reality it simply won't work because a) most people are too lazy / don't care enough, or b) once a community bank gets TOO much in terms of reserves vs. what they loan out, they get penalized and have to pay interest on the reserves. So, if there was a massive flooding of money out of the major banks, into local banks, chances are you'd put your local bank in serious trouble. It would have to expand massively and take riskier bets on who they lend to, and we find ourselves in the same situation all over again.
Lastly, most people who have real money aren't going to be stupid enough to move the money out because the people with the real money know they wanna be with the guys who can trade on wall st. and make some serious money on the market or in getting the best rates collectively through funds and bond managers in government debt. You think they're gonna rise up and take one for Joe on Main St.? Hell no! I wouldn't either if I had millions or billions sitting around. I'd laugh my ass off! After all, either I or someone in my family tree worked their ass off to get where I am. You gotta be joking.
This is not accurate, although credit unions and small banks have smaller advertising budgets they are also advertising to small demographic/geographic area.
You need to compare the amount of dollars spent on advertising in the geographic area or on the particular demographic that the credit union serves, not advertising budgets in general. Bank of America's advertising in Oregon does nothing to get costumers in Los Angeles to use them.
In some sense the small banks and credit unions have the advantage in advertising.
Gasp! Choke! Guffaw! You CAN"T be serious can you?
Big dollar ads spread nationwide will always yield more customers that any local ads will.
I am willing to be educated out of my ignorance. What is your definition of this term and why are you defending them? Please be specific.
The remaining points you made are your opinion and you have often demonstrated here that your opinions are not based in any relevant facts as my previous dealings with you have indicated. Note that I don't need to call people dumb, stupid, etc etc. That is a hallmark of someone who doesn't have a logical argument to make. However I will give you a pass this time as I am interested in receiving an education as requested in the previous paragraph. I am sure the rest here are waiting for this too. Oh and there will be questions by the students.
The average Wall Streeter is some guy/gal making 50-75k a year or less who works 12-16 hours a day under the consent fear of being fired for anything less than perfection. He/she has no real authority and just does what someone tells them to do.
The people in the tier above them paid their dues mostly. Now they get to work 16 hours a day 7 days a week, often times being called stupid by their boss (you obviously wouldn't last a week, lol), held hostage by non-competes, hoping that they'll get a bonus at years end to make it all worthwhile.
In other words, the typical Wall Streeter is some bloke who's probably spent a small fortune on college to get a job most people wouldn't do, whose working his ass off trying to keep his job as he watches those around him fall like flys.
And I;m not sticking up for them. Theres a difference between pointing out the ignorance and taking their side. This whole, throw them in jail though is stupid. You don't even know who "they" are, my point. You also can't name 1 law "they" broke. Your just mad and saying silly things like a child does when he says he hates his mom because she scolded him. Well guess what? Wall St couldn't have lost the money if main street didn't play the game right along with them.
So know what? I'm mad too. I'm mad that all this happened. I'm really mad that the average person as it turns out is dumber than a rock and totally unwilling to take responsibility for their actions. I'm mad the banks got bailed out too. Not because the bankers benefitted by keeping their jobs but because joe 6 pack got off easy. Their life savings didn't get wiped out. Their bank accounts were saved and that angers me.
But what angers me most is how few people seemed to have learned anything. All I hear is. "oh those damn wall streeters took advantage of the poor little guy".. waa waa waa.
As fir the rest of your post. FO!
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