The Move Your Money Campaign – Is Taking Our Money Away From The Big Banks The Answer?

Is taking all of our money out of the big banks part of the solution to America’s financial problems?  The truth is that people across the United States are angrier about financial and economic issues than they ever have been in modern history.  It did not sit well with millions upon millions of hard working Americans to watch their tax dollars being used to fund multi-million dollar bonuses at big financial institutions that were just bailed out by the U.S. government.  It made Americans even angrier when these big banks that got the bailouts actually decreased their lending.  It has been the big banks who got the massive government-funded bailouts who have been hoarding their cash, while the local community banks and credit unions that have been serving their customers loyally for generations have been left to die by the feds.  Now the banking industry in the United States is more centralized than ever.  At the end of 2007, the “Big Four” U.S. banks – Citigroup, JPMorgan Chase, Bank of America and Wells Fargo – held 32 percent of all deposits in FDIC-insured institutions. As of June 30th of last year it was 39 percent.

So are we going to let the big banks swallow the whole pie or are we going to do something about it?

Well, there are some people who are doing something about it. Arianna Huffington and Rob Johnson of the Huffington Post have started “The Move Your Money Campaign” which calls on all Americans to take their money out of these big banks and put it into smaller community banks and credit unions.

So is it working?  A recent Zogby Interactive poll found that 9% of all U.S. adults have already taken some of their business away from big banks as a protest.

The reality is that it is impossible to vote the bankers out of their positions.  So if we want to change the banking system, perhaps the best way is to take our cash away from the bankers.

But will it work?

Are the big banks simply too big and too powerful to even be bothered by a protest of this nature?

Perhaps, but nothing great was ever accomplished by not trying.

When they began this campaign at the end of last year, Arianna Huffington and Rob Johnson described their reasoning this way….

The big banks on Wall Street, propped up by taxpayer money and government guarantees, have had a record year, making record profits while returning to the highly leveraged activities that brought our economy to the brink of disaster. In a slap in the face to taxpayers, they have also cut back on the money they are lending, even though the need to get credit flowing again was one of the main points used in selling the public the bank bailout. But since April, JP Morgan/Chase, Citibank, Bank of America, and Wells Fargo — all of which took billions in taxpayer money — have cut lending to businesses by $100 billion.

Meanwhile, America’s Main Street community banks — the vast majority of which avoided the banquet of greed and corruption that created the toxic economic swamp we are still fighting to get ourselves out of — are struggling. Many of them have closed down (or been taken over by the FDIC) over the last 12 months. The government policy of protecting the Too Big and Politically Connected to Fail is badly hurting the small banks, which are having a much harder time competing in the financial marketplace. As a result, a system which was already dangerously concentrated at the top has only become more so.

How else are we going to hold these bankers accountable?  They have abused us and have abused the entire financial system, so they do not deserve our business any longer.

To promote The Move Your Money Campaign, filmmaker/author Eugene Jarecki produced the stirring YouTube video posted below.  This video makes it exceedingly clear why we all need to start boycotting the big banks immediately…..

Please share this video with all of your friends and family.  The reality is that the U.S. government has made it abundantly clear that the big banks are “too big to fail” and will always get bailed out, while all of the small banks and credit unions will be allowed to die and their assets will be divided up by the sharks.

If that does not sound like a good plan to you, then do something about it.

Pull your money out of the big banks.

Encourage your friends and family to do the same.

Otherwise the banking system of the United States will soon be concentrated in the hands of just a few and then we will all pay the price.

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FDIC Opens A Massive New Office Near Chicago Just To Handle The Coming Tidal Wave Of Midwest Bank Closings They Are Expecting

Is the Midwest about to see a massive wave of bank closings?  That is apparently what the FDIC is expecting.  The FDIC is opening up a massive new satellite office in the Chicago area that will be dedicated to managing receiverships and liquidating assets from failed Midwest banks.  This new facility will occupy 7 floors in an 11 floor building.  The office space that the FDIC is leasing is well over 100,000 square feet and will employ approximately 500 temporary employees and contractors.  This is a huge expenditure by the FDIC.  So will there really be so many bank failures over the next couple of years in the Midwest that a 100,000 square foot facility is required to deal with it?

Apparently someone at the FDIC thinks so.

But this is not the first time the FDIC has done something like this.

The FDIC has already opened similar offices in Irvine, California and Jacksonville, Florida.  Each time, the number of bank failures in those states increased dramatically after the FDIC opened those facilities.

So what is going to cause such a massive wave of bank failures that the FDIC will need hundreds of new employees just to deal with it?

Well, as we have reported previously, the financial powers in the U.S. are now moving to reduce the money supply, hoard cash and tighten credit.  All of those things cause a slowdown in economic growth.

At the same time, a gigantic “second wave” of adjustable mortgages is scheduled to reset starting this year.  This could push the U.S. economy into “part 2” of the housing crisis.  Just check out the chart below….

In fact, one new study has been released that estimates that 5 million houses and condominiums on which mortgages are now delinquent will go through foreclosure and be put on the market within the next few years.

Another devastating housing crisis would absolutely destroy the vast majority of small to mid-size banks in the United States.  In such a scenario, the FDIC would definitely be able to make use of the new facilities that they are opening up around the United States.

There are even rumors that the big bankers do not intend for most small and mid-size bankers to survive the coming crisis.  There are whispers that the big bankers see all of this economic turmoil as a great opportunity to “consolidate” the banking industry.

So what should you and your family do to get prepared?  Get out of debt and get rid of any unnecessary expenses.  Try to start developing alternate streams of income and come up with a plan for what you will do if you lose your job.

The reality is that hard times are coming and a lot of people are going to lose their homes and their jobs.  Don’t just blindly trust “the system” – now is the time to make sure that you and your family will be prepared even if a total economic collapse happens.

The Feds Were Quick To Bail Out Their Friends At The Big Banks But Are Letting All The Small Banks Die Like Dogs

The Feds Were Quick To Bail Out Their Friends At The Big Banks But Are Letting All The Small Banks Die Like DogsThe massive federal bailouts that Congress passed in 2008 and 2009 were supposed to stabilize the banking system and breathe new life into the U.S. economy.  We were told over and over that the major banks were “too big too fail” and that the U.S. government was helping “Main Street” by giving massive bailouts to Wall Street.  But unfortunately all that is not working out too well.  Instead, the major banks (which got the bailouts) have cut their collective small business lending for the seventh month in a row while the feds are letting all the small banks die like dogs.

The truth is that the major Wall Street banks that had friends positioned in the U.S. government were able to get massive bailouts during the economic collapse of 2008/2009, but all of the small banks that have been so good to so many communities across the United States for so many years are not getting any help.  In fact, there are rumors that they are purposely being allowed to fail.  In 2009, 140 banks and S&Ls failed.  In addition, 31 credit unions went under.  So that makes a total of 171 lending  institutions that were allowed to collapse in 2009.  It is estimated that the bank failures during this financial crisis have already cost the FDIC ten times more than the entire S&L crisis of the 1980s did.

But the crisis is far from over.  In fact, some analysts are now projecting that 200 banks will fail in the U.S. in 2010.

The FDIC is officially in the red and it is rapidly hemorrhaging cash and there is no sign that the bleeding is going to stop any time soon.  Small banks are failing at a rate that is beyond alarming.

But do you know what they are being told when they turn to the U.S. government for help?

They are being told to go find a big bank that is willing to gobble them up.

In fact, there are persistent rumors that the banking system is being consolidated by design.  So if that is the case, expect to see a lot more small banks continue to fail and get gobbled up by the sharks for pennies on the dollar.

Meanwhile, the big boys on Wall Street are being criticized for the gigantic year end bonuses that their top executives will be receiving.  

Life is good if you are a bankster.

So are all of those big Wall Street banks helping out “Main Street” by lending to small businesses?

No way. 

In fact, the biggest banks in the U.S. cut their collective small business lending balance by another $1 billion in November.  That drop was the seventh monthly decline in a row.

The truth is that in modern America, small businesses are incredibly dependent on credit.  For many small businesses, no credit means that they simply will not have the capital to operate.

But the big fat cats who got all of those bailouts have reduced their lending to small businesses each of the past seven months.

So, no, “Main Street” is not reaping the benefits of all of those bailouts.

Apparently the big banks needed to save up cash to pay all of those outrageous bonuses.

So all of the big banks are hoarding cash, and hundreds of small banks are being allowed to die like dogs.

What a mess!

Anyone have any ideas for cleaning it up?

The Economic Collapse