tag:blogger.com,1999:blog-1207581886255094115.post3323752544401039304..comments2024-02-26T05:51:17.859-05:00Comments on Economic Disconnect: No One Asked MeEconomicDisconnecthttp://www.blogger.com/profile/02802078645713106743noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1207581886255094115.post-91059739680936464262013-02-23T02:33:35.760-05:002013-02-23T02:33:35.760-05:00Hello! I'm at work browsing your blog from my ...Hello! I'm at work browsing your blog from my new iphone 3gs! Just wanted to say I love reading through your blog and look forward to all your posts! Carry on the fantastic work!<br /><br />my homepage ... <a href="http://integrallife.com/node/207741" rel="nofollow">take a look</a><br /><i>Also see my site</i>: <b><a href="http://social.macintel.net/index.php?p=blogs/viewstory/47391" rel="nofollow">I agree with that</a></b>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-71985479501652002222011-01-07T12:30:26.284-05:002011-01-07T12:30:26.284-05:00What most people don't understand about bankin...What most people don't understand about banking is how it really works.<br /><br />A banker makes a loan, say a mortgage, for $100,000 on a 30-year note. At 5% the total amount of interest generated after full amortization is $97,000. So over the next 30 years, the bank will be repaid the principal and earn nearly as much in interest.<br /><br />However, the banker counts that $197,000 as income this year, even though it won't be realized for three decades, and pays himself a bonus based on that amount. Thus, the bank earns an origination fee, usually 1 or 2%, and the banker earns a bonus, then sells the note to an investor so if it defaults no money is lost. The bank and the banker have already been paid, while the investor assumes all the risk.<br /><br />The costs involved in foreclosure on a delinquent note are significant. And the expenses involved with repossession and resale (maintenance, utilities, repairs, taxes, commissions, closing costs) are severe. You're looking at a loss of 50% or more on your investment should the borrower default.<br /><br />But neither the bank nor the banker care about that. They made their money. Why should they be concerned if the investor loses his shirt?<br /><br />This is the root of the problem.GawainsGhosthttps://www.blogger.com/profile/16719480047404817864noreply@blogger.com