As you may know some of the recently bailed out companies have begun to post their quarterly results. Earnings of banks effected by the melt-down and subsequent bail out have skyrocketed and in the automobile industry General Motors has completed the payback of their government loan, with interest five years early (I saw the commercial, too).
In addition to the above a new Security and Exchange Commission (SEC) investigation reveals that staffers who were supposed to be watching these financial institutions were watching pornography instead of watching the operations. To quote comedian Wanda Syke’s “they were watching the wrong people getting screwed.”
Now the financial institutions, with the wind at their backs, have sailed into prosperity; the auto industry has rebounded with Ford picking up market share. Both Kmart and Sears experienced an uptick in sales – a first for the combined companies since their merger into Sears Holdings in 2005.
With millions of American’s out of work, institutions that profit off bad credit are “getting paid,” what better reason to ding someone’s credit than to reap rewards in the future as consumers with newly designated poor ratings pay the price. Sure you can get a car but the interest rate is going to be “HUGE-A.”
There are people, who’ve never been late, suddenly paying what used to be seen as extortion, rates of 25 percent. In addition to jacking up the interest rates these same companies paid millions in bonuses and incentives turned around and squeezed the money out of their customers while simultaneously placing them in a position to pay through the nose for basic consumer credit.
In the past, banks and other financial institutions would give the customer a toaster or can opener for opening a new account. Local relationships were coddled and cultivated, our banking system was more friendly and community based. Kinda like the Lucy Show with Mr. Mooney as the local bank president; how did Lucy get a trust fund anyway…
At the very least these institutions owe each American taxpayer a toaster, a can opener, a microwave oven, heck, even a gaudy umbrella with their logo on it.
As long as we’re talking about getting paid, General Motors and Chrysler should give every American a $5,000 credit towards a new car.
In the meantime I’ll just take my toaster, please.