A reader writes:
I have a question… Does anyone know how many banks are incorporated in Delaware – and of those, how many are on shaky ground? Isn’t a big chunk of Delaware’s revenue bank dependent?
Signed,
Nervous Nelly McSmelly~
Dear Nelly,
You sure hear a lot about banks screwing the pooch lately don’t you? That’s because a lot of banks got out of the loan making business and got into the pile of shit creating business. You see in the old days before banking deregulation (thank’s Tom Carper and Pete DuPont!) banks used to earn an honest buck by lending money to decent Americans who wanted to buy a house and didn’t have enough money so they showed the bank that they had a job and 20% of the house’s value and they promised to pay the bank back over thirty years plus a little bit extra for the privilege of using the bank’s money.
But that was a slow and steady way for banks to make money, and banks wanted alot of money and they wanted it now rather than later. So when deregulation came along some banks learned that they could lend ANY amount to ANY borrower no matter what they were buying and or what chance they had of paying it back and make gobs of money by selling that shitty loan to another bank. Further, that second bank could make gobs of money from selling that crap loan to another bank and so on and so on and pretty soon everyone is making money and voila we have a huge shitpile of bad loans on our hands that the US taxpayer owns.
But don’t worry. Most Delware banks didn’t go that route. They decided to make money by screwing people with crazy credit card charges and insane interest when Pete DuPont and Tom Carper had the usury laws taken off the books.
So we are cool because everyone needs a new plasma TV right? Anyway, thanks for asking.
Sincerely,
Dr. Liberal.