Comments on: Why I will no longer do business with Wachovia Bank

By: wicked tickets

wicked tickets — Thu, 29 Dec 2011 09:41:31 +0000

Nerds are lovely and thoughtful people who have their center set in the right location. They know what is seems like to be tormented and taunted through university wedgies and bathroom dunkings – and wouldn’t wish it upon anyone. A dork will look after you better than any jock could.

By: Cheap Motorcycle Helmets

Cheap Motorcycle Helmets — Tue, 01 Nov 2011 06:44:59 +0000

So it’s in the bank’s best interest to loan money to people who will actually repay it, vcan helmets and that’s why Wachovia’s offer is foolish: the only people foolish enough to take a loan at 50% interest are the kinds of people who will never repay their loan.

By: get well soon messages

get well soon messages — Mon, 31 Oct 2011 11:02:49 +0000

The basic courses in the MBA program is designed to introduce students to various industries such as accounting, finance, marketing, human resources, operations management, students and others in the MBA programs are able to take General management courses throughout the program, or can choose an area of concentration and focus around a quarter of their studies in this section.

By: Bob Haas

Bob Haas — Wed, 20 Oct 2010 05:55:57 +0000

If you look at the check and especially the Truth in Lending statement you’ll see that Wachovia is not who made the offer, it was Regional Finance Corporation, who just happens to use Wachovia as their bank.

By: Robin Munn

Robin Munn — Tue, 01 Dec 2009 11:03:08 +0000

That’s nonsense. If what you’re saying were true, I could take out a loan for $10,000, default on the loan immediately, and the bank wouldn’t be harmed by it at all.

Furthermore, all this “brand new money” being conjured “directly out of thin air” every time someone takes out a loan would have the same economic effect as the government printing large sums of money: runaway inflation.

How loans actually work is that the bank is loaning out the money that is being deposited with them by people with savings accounts. But there’s a limit: the bank can’t loan out more money than they actually have, minus a certain percentage that they keep in reserve (the “fractional reserve” of Fractional Reserve Banking). If the bank loans money to someone who defaults on their loan, they have actually lost money.

What you may be talking about is the “money creation” effect of repeated loans (see http://en.wikipedia.org/wiki/Money_creation for a chart that explains it pretty well), but that doesn’t create any actual money, it just makes that money circulate more widely. And each bank is limited in what they can loan out to the amount they actually have. So it’s in the bank’s best interest to loan money to people who will actually repay it, and that’s why Wachovia’s offer is foolish: the only people foolish enough to take a loan at 50% interest are the kinds of people who will never repay their loan.

By: imafraidyoudontquiteunderstandhowitworks

imafraidyoudontquiteunderstandhowitworks — Tue, 17 Nov 2009 20:31:24 +0000

Banks do not loan out money that they *have*.

When a bank makes a loan it conjures brand new money, directly out of thin air, in to your loan account. This is the magic of Fractional Reserve Banking.

So, a bank is not actually risking any of its capital… it is only
considering the Opportunity Costs between the different loan possibilities that the loan sharks can think up.

The Mortgage or Loan Application becomes a BRAND NEW asset on the Bank’s Balance Sheet.

It is good to be king.