Are the Bank hording the $$$$$

The latest bad news – the government approves 700 Billion for the banks – and the banks take the money and stash it – rather than lending it. Rather than gripe about it – there is a simple solution. Most of the money has not been given out as yet – so STOP IT – pass a new bill and change the deal. Here’s how it should change – any Bank that wants the bailout money – must accept it as a “demand” loan – which means the Fed can call the loan at any time and demand repayment. This is precisely how these same banks lend money to businesses. If its good for the goose – its good for the gander! If the Banks don’t start lending money and doing as the Fed sees is in the public interest – then the Fed calls the loan. Thus – either the bank plays ball – or they are out of the game. Congress — it is not that complicated if you’d stop and think for a second.

Auto Industry Bail Out – What is so Complicated?

I don’t understand the financial wizards. If the Detroit Automakers go down – you might as well extend Lake Michigan to Lake Huron. Congress needs to get real. The key, however, is not just to give the big three money – they will burn through it unless AUTO SALES ARE STIMULATED.

To do that – all that is needed is to provide government guarantees to the Banks on auto loans and leases for the purchase or lease of domestic manufactured vehicles. The interest rates should range from 1% on fuel efficient cars to 4.99% on the SUV gas guzzlers. The Federal Program has to say to the Bank – if you want the guarantee – then you must approve loans for Buyers/Lessees with FICO scores above 600 (not the current ridiculous new requirement of 700 that has killed the market). If the buyer/lessee defaults, then the Bank is covered on 90% of the loss following repossession and sale of the vehicle.

This, coupled with enough money to get the Big 3 through the crises – is a plan that will work. Once auto sales and leases get going – so will our economy and only then will a turnaround occur.

So What Do You Think?

Do you believe that it’s possible for consumers to band together to effectuate change? I don’t think its nearly as complicated as one would think. All that is needed is a commitment to stand together as one unit. If enough people sign on to the program – the magic lies in the numbers. If you read this — please let me know your thoughts!

Join Me – Saturday Mornings at 9 AM

Join me Saturday mornings at 9 AM on www.wdfn.com (streaming); in the Metropolitan Detroit area that’s Sportsradio WDFN 1130. I am the host of “The Financial Crisis Talk Center” a one hour talk show hosted by me and our law firm, “Thav, Gross, Steinway & Bennett, P.C.”

If you’re mad and angry about the Financial Crisis and the mess we face today, this is your chance to speak your mind. Call me on the show at 248.848.1130 – that’s Saturdays at 9 AM.

Let's level the playing field

We now know that the Banks are vulnerable – if their cash is cutoff – they crumble. This means we – the Consumers – have a chance to level the playing field. How do we do it? We organize. We band together and negotiate with our combined economic power. If 1,000,000 credit card users who make minimum monthly payments of $100.00, band together, we have the power to withhold $100,000,000 from the Banks – per month.

We don’t have to stop paying – all we need to do is to join together and use the leverage of committing to hold back payments to negotiate real reforms. Fair interest charges and reasonable policies.

Join me on this campaign. If you’re interested; post your support on this Blog, tell your friends and email me direct at kengross@thavgross.com.

The time is now and the time is long over due!

What have we learned ….

What have we learned? We learned over the last 20 years – two important lessons. First, the Consumers have been taken advantage by Banks, Mortgage Lenders and Big Business who have had the economic strength to lobby Congress to allow them to charge outrageous credit card interest and to create mortgage programs that have created economic disaster for the U.S. economy and the Global economy.

Second – we’ve learned that the Banks – as big as they seem – are vulnerable when they are short of cash.

Whose Going to Pay for the Bailout???

Let’s think about it. The Banks have lost billions and have turned to Uncle Sam to borrow money to stay in business. They have to pay this money back in 5 years otherwise the preferred dividend the government receives goes from 5% to 9%. Where are they going to get the $$$$. We know its not going to be in mortgages! That leaves – what else – credit card interest, bank fees and charges. If you think we’ve been abused until now – just wait.

Do you agree?