Clueless Cain; Brainless Bank of America

Cain thinks the Wall Street protestors are jealous or envious of the successful bankers, et al of Wall Street. He says the latter create the jobs and those protestors should go out and get one. Hahahaha! No, the protestors are not envious, they are angry–just like the Tea Partiers on the other side of the political spectrum. The Street, the bankers and big business have created jobs, just not many lately. The banks are loath to lend money to consumers or to business to get the economy humming, because they are “uncertain” about the future. When the wacky wizards of Wall Street were busy creating and selling derivatives, they weren’t creating jobs, they were just skimming money on transaction costs. When the bankers were giving large loans to home buyers who could walk or be rolled into a bank, sign their names or an X on an application with little or no credit worthiness, those uncertain bankers had no doubts about the rosy future (at least in the short run). Meanwhile, they were all bailed out by the government. We don’t have a purely capitalist economy as Cain should well know, we have a mixed economy with the Federal (and state/local) governments involved in pumping dollars into it. Those protestors are angry at Wall Street and the bankers for continuing to profit (not the plebian lower-level employees but the high level analysts and the executives) handsomely regardless of which direction the economy or the value of shares  in their companies goes–while failing to either share the wealth or create jobs.

Bank of America will impose a five dollar charge per month for using your own money, that customers have deposited with them. Of course, BoA is making much less interest on the funds people deposit, so they feel justified in charging customers to make up for it. Well, I for one have voted with my pocket book, closing my account with them three days ago. Banks pushed debit cards so hard for the last ten years that they have now grown to be the preferred means of payment over credit cards. To be sure, it forces those consumers who otherwise might incur overly large credit card debt to live within their means. But why should you or I be responsible for the profitability of BoA? We can choose to pay cash, switch to another bank, or use credit. For years, I have chose credit. I pay the balance off every month and get cash back. Of course now that will be more difficult now that Chase, my MasterCard company has converted my card to this very complex reward system–but that is a topic for another post.