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That would work great for maybe 10% of the population that would actually payoff their debt. Remember most people are like children. They buy anything whenever they want it, and will find the money for it later. I understand you plan, but we would have to change years of human behavior. I never would hear my Dad say "Let me bail you out so it will be taken care of". I believe his words would have been "You got into this mess I am sure you are capable of getting out". What would we be teaching people if we bail them all out? 40 years from now there kids would think "Oh the gov will just bail me out" I know people may have been victims of predatory lending, lost jobs, had medical bills or uexpected expenses. We are smarter than our gov. I don’t want to play their game. We would be prouder of ourselves and less dependent on them if we found a different way.
I am with you the bailouts make me furious. At work I talk with people that cannot afford a family dinner while banks get billions. Let the gov take care of their own (like they always do) and we will take care of ourselves.
They cannot take down everyone if people refuse to pay taxes, mortgages and unsecured debt.
I would think all remaining banks (JP Morgan, Wells Fargo, B of A, Citigroup, and U.S bankcorp) are now all "to big to fail". If any one of those were to fail the others would fail as well. They rely on each other. One aspect that worries me that has not been brought up alot is what happens when we run out of buyers for these firms? JP and Wells cannot buy forever they are getting hit harder everyday. So eventually they will have to let some banks fail. When that happens FDIC insurance would be irrelevent. Are they trying to create a superbank? I can’t even imagine what the fees would look like at the "With-the-gov-help-we-killed-all-the-other-banks" Bank.
It is alot of info. It also is something I can’t control which makes it more difficult for me. Get some sleep and take care!
What I enjoy most about my job is that numbers don’t lie. They are compiled without people to adjust them. So I get to see these trends first. I can say as they get handed from supervisor to management to executive everything gets altered. They get paid based on certain numbers so they make sure that happens.
I am able to see changes coming. It is a program so you can ask for any amount of data. One would have to interpret the information. One area that always has concern me is what indicators they used to give a loan. Gross Income. The reason this does not make sense is with increasing medical premiums and taxes people were given to much. I cannot speak for all banks, but this one 20 years ago used net income. Why the change? It has caused huge issues that will only grow later. Another trend 1st mort applications were based on net income……Home Equity loans were based on gross income.
You can pull any type of data as far back as when the company started. I have over 100 years of data to look at trends.
There were many alarms not just one. Sharp increases in delinquency rates and unemployment claims for families making 50k and less (gross income) and household with gross income 100k +. Since the upper class is only 5% of the population it took a few years to finally catch up to the middle class.
I do have the ability to do my own investigration, but I am not able to disclose any specific information.
Bankrate is decent. I just looked up the Citigroup and it was 3 stars. This data is based off info from Sept 22 2008. Some larger banks have many different parts. Make sure you are looking at Citibank N.A. This will be true for Wells Fargo, Bank of America, WAMU, Wachovia…etc. (Wells Fargo Bank N.A.) The problem with all of these sites is they based the Sep 22 2008 rate from previous quarter performance/review. This site is great to show who will struggle down the road. A rating of 3 is simply saying "You will see us struggling in a few months". Banks have internal information about the health of other banks. The information is updated daily. I would not count on the bank giving current information to the public. They are terrified and delinquency rates are increasing rapidly. In a couple years bankrate may have nothing to rate.
Please let me know if you have more questions…..I work for a major bank and can point you in the right direction.
I am sure they do use the same type of program for lending. However, the information I track is trends in Loss Prevention. One that may interest you is the decrease successful loan modifications. They would like you to believe that they are increasing. Sure demand is increasing, but only about 5% can qualify for a modification. I do not have proof for this theory but I believe banks feel the gov will buy their bad assets sooner or later. This means they really don’t want people to get modifications. Another indicator I am monitoring is the Delinquency rates vs social classes and FICO scores. I doubt the data would be suprising for anyone. I get to see a snapshoots of what could be down the road. Are there specifics you were curious about? I would think the government would have to have access to this information as well. Unless they are choosing to ignore it. The numbers I have are only good for the all the borrowers in one institution. Banks can compile their data to do larger trend analysis, but then the more hands that touch the information…..corrupt it.
Banks have access to this technology. They are using it right now in Loss prevention to determine what groups of individuals are delinquent. It determines what type of loan modification a borrower may qualify for if they need assistance. The program allows an agent to use neighborhood foreclosure rates (on city, county and state level), employer financial data, family financial history and social class. There are many other ways to sort the groups depending on the info needed, but for the purpose of loan modification we are not using any other criteria.
What sort of information where you wanting to see?
I guess they still think bailouts are the best option. Their "bad debts" are only going to increase. Whatever the gov. wipes out now down the road they will still have the same issue. How much will this bailout cost?
Next week should be interesting. If they do let Citigroup go…..be prepared for accelerated bank failures.
Here you go Miranda! This was a forum topic awhile back that Krogoth submitted. It should answer your questions.
Hope that helps!
FYI~ It may help to take out funds Tuesday-Thursday. The reason is there is less traffic in the banks. Banks usually get their shipment of cash in on these days too.