Image by lalunablanca via Flickr

Not only is America suffering from an economic crisis, it’s caught in a vicious cycle, too, caused by the banks that helped fuel the crisis.

After the bottoms fell out of the bank vaults in 2008, because banks approved bad mortgage loans that brokerage firms then sold to their customers as credit default swaps, the banks became tightwads, making it difficult for small businesses and conscientious bill paying Americans to borrow money, thus creating a worse economic crisis and a tidal wave of debt.

To wrap this up in a lovely decorative package, since many banks approved bad loans back in 2008 due to their greed, we, the taxpayers, who had to bail them out, can’t get a loan from the banks we bailed out because the banks are afraid to approve loans to people who loaned them money in the first place. Whew! That was exhausting.

So, the banks got out of debt and are collecting interest on our money, while, we, taxpayers, who had to choke up cash for the loans, are accumulating further debt.

What’s wrong with this picture besides the dark, blurry images? The disproportionate wealth.

Why do politicians allow banks to get away with this? – Because bank and financial lobbyists stuff their pockets with cash. Which begs the question – Who’s running the country – politicians or bankers?

If this unethical practice persists, the banks will continue collecting interest on our money and growing their profits, while, we, the taxpayers who rely upon the banks for loans will be forced to file bankruptcy, or foreclose on our homes and essentially lose everything we’ve worked hard to achieve in our lives.

We, the conscientious bill paying Americans that helped subsidize the people who could not afford to pay their mortgages and the banks that couldn’t afford not to loan them the money, are paying for their mistakes.

And we’re not alone.

Many small business owners, who pay taxes and are struggling because they can’t get bank loans, can’t add jobs to the economy, while many corporations that are not paying taxes and not struggling, are creating more jobs overseas since it is cheaper than creating jobs at home, and because of it, are growing their profits in offshore bank accounts.

Without good paying jobs and disposable incomes, how can conscientious bill paying Americans continue to buy merchandise produced by corporations? Without paying customers, how can corporations maintain their bulging bottom lines and their fat assets?

In this new America, banks won’t approve loans to conscientious bill payers experiencing economic hardships unless the conscientious become debtors and/or default on their loans. I know this to be true. The bank told my husband so when we tried renegotiating our mortgage payments, to get back on our feet, after being simultaneously unemployed.

“Come back after you’ve filed bankruptcy,” the perky bank rep said. “Then, we can work something out.”

Who’d have thought that diligent bill paying and an excellent credit rating would be a detriment for getting a loan?

So the vicious cycle goes … folks who worked hard to keep their finances in good standing, who hit a bumpy patch in the road, will never sit in a loan desk chair unless they become debtors and follow the liability inclined into the financial hole the banks keep digging for us.

Yet, despite the banks unethical loan practices and politicians money snatching, the most disturbing thing of all —

Why does the media focus on pictures of a Congressman’s dick, when the real dicks are standing on the sidelines watching the ground shake beneath the conscientious taxpayers’ feet, as jagged cracks emanating from the banks financial earthquake, grow wider across America until neighborhood after neighborhood collapses into the schism that now runs deep across the land?

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Why Do Banks Hate America? is a post from Blazing Minds Copyright 2008-2011. Please link back when using this source material.

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