-By Vince Johnson
When I was a kid, banks focused upon finding ways to get people to stash a little of their money into a savings account. The idea was basic. If you wanted something, you saved up and bought it. That sort of reality no longer exists. The banks of today want people to borrow money instead of saving it. The ability to actually make the payments is incidental. What counts is a signature on the loan documents. The loans are sold to larger financial institutions, and when they (the larger financial institutions) get in trouble, arrangements are made to have Congress bail them out. That may not be the way it ought to be, but that’s the way it is.
As you can readily see, reality is imploding right before your eyes. Ordinary folks can invest in stocks, bonds, CD’s, real estate, their own businesses, education, precious metals and real things like that. Financial institutions and insurance companies, etc. have found it much more lucrative to invest in intangibles like political influence over Congress and billions for advertising programs designed to encourage people to have cars and houses and vacations and boats and TV’s and computers etc., by using credit rather than cash.
Continue reading “What Happened to Reality?”