Predatory Lending Practices

predatory_lending

We all ready know about the mortgage bubble that the Obama administration has blamed on the big banks and not on the fact that the Democratics encouraged the lending with no down payment, without a valid job, etc. Predatory lending practices have been the subject of a lot of lawsuits. The latest is J.P. Morgan which just settled for $11 billion dollars a claim that they had improperly suckered people into loans they could not afford to pay. This is a national settlement and you need to look behind the headlines to understand what is happening. The Obama left wants to make these banks look bad so they brought the lawsuits to make them look good- hurrah the government is helping us out, sticking it to the man!

Well, where do you think JP Morgan gets the money to pay the fine. They get it from the Federal Reserve which is printing (actually not- just adding it to the books, cost to much to actually print money anymore) $85 billion dollars a month to buy Federal debt. The Fed Reserve then parks the debt as an asset on the balance sheet of JP Morgan. This way it doesn’t get into circulation and cause inflation. So now it is an asset on the banks balance sheet- so it shows $130 billion dollars so here government take your $11 billion dollar settlement back and we are even. PHONEY MONEY FOLKS

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