Friday, January 13, 2012

Too Big To Fail

Short Sales4U Real Estate News: Too Big To Fail~

“Too Big To Fail” this is a phrase that the CEO’s at Large US Banks know is not that far from happening all over again.

We all want to learn from history, especially when it comes from our recent history. Many of us believe that our Government was created to protect us and also that we may use our government as our voices as citizens of the United States of America. I for one would like to use my platform or voice to echo the calling of my concern to create a fair and equitable platform for all citizens to depend on when it comes to investing our money into the banking institutions of the U.S. and not fear them because the Government set them up again to fail because it was in the interest of Big business and Big Government.

Short Sales 4U was originally created because we needed to answer the plague of short sales being mishandled by most of the real estate agents who really had no idea what to do next or even how to close a short sale. We created a platform for not only real estate agents to use, but homeowners to depend on which gave them dependable information and direction. I believe we met the needs of the many by being fair, honest and hardworking. We did not have to hide behind false doors or a false sense of security. We have been transparent from the beginning which people have come to depend on in this volatile market.

When I am working with most of the big banks almost every day I hear the voices within them and listen to what the agents working for them are saying. I found out about some big banking institutions “lending” practices and was literally dumfounded on what I stumbled upon. I found out that Bank of America, one of the largest banks in America is not FDIC insured anymore. I found out that ALL real estate sales in the U.S. sold after January 1st 2012 will now have a NEW 3.8% sales tax on top of any other real estate fees in your County and State, to help fund the new heath care system in place to cover all U.S. citizens. I found out that the big banks that we so conveniently bailed out in 08’, were now borrowing from the Federal Government in or around the tune of 100 billion dollars over the last year to year and a half. This was due to there being no other outside investors/groups that wanted to give those “undisclosed” big banks any money because of their insolvency of assets. Having too much cash turns out to be a bad thing! Some of them selling off too many of their bad debts too fast turned out to bite some of them in the butt! Who would’ve thought? Now they say they have no good standing outside institutions that will lend to our big banks, but the Federal government. This is not a good thing since the Government shouldn’t be in the Banking business, or quite frankly any of our private business.

I now know that the Government has created a “tantalizing” recipe for disaster. We know that AIG was bailed out because it was “too big” to fail right?

Well, now there is the rumor floating around that one of our larger U.S. banks will merge with another large U.S. bank. That will leave the U.S. with only two or possibly three large banks left running most of the national mortgages for most of the U.S. homeowners. If even ONE of those banks begins to fail that would leave Americans holding the bag again for the banks. Those banks would be “too big to fail” in the governments eyes and the CEO’s know this. They could literally drive their banks into the ground. They could use their liquid assets to do just about anything they want. They could boost their own salaries into the sky and then know the whole time they are “too big to fail”, and they will be bailed out because of it.

This really leaves a bad taste in my mouth as a tax paying citizen, and I really don’t think we should stand for it again. (It’s only been 4 years!!!) Don’t let the banks just walk all over the poor citizens of America. Turn this around and let your congressman know that we need more regulations within the merging and bail out rules that Congress implemented a few years ago. We need an independent committee that audits the bail-out company’s monies spent regularly. We also need to make sure that when we do help them, that they can’t turn around and help themselves get into the same boat we just bailed them out of. We need to make sure that when large banks want to merge that it must be voted in by congress before such an event could take place to insure us that we aren’t allowing this “too big to fail” concept to happen. Having separate committees set aside to audit their money isn’t too costly when we avoid making mistakes that not only cost us, but our children’s children. To me that is cost effective!

Even though the banks are what’s driving my business forward, I need to know that what I am doing in real estate is good for my children and everyone else that I represent in short sales and real estate is being helped for the greater good.

Sincerely, your real estate advocate at Short Sales 4U,

Stacie MacDonald

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