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2/17/2011 9:05 AM
 
I remember back in 2004-2005 anyone who could walk in to a bank and ask for a mortgage, could get approved with $0 down in no time. A property that was $200k was sold for $600k and usually in a very short time. So, the bank was able to create a $400k extra in loans. Everybody was happy. Banks made a fortune.

Today, the same property is coming down back to its real price around $200k, but now you need a bunch of documentation and a credit score of over 750, 30% down to apply for a loan and chances for getting approved for a loan is very slim. There must be something fishy going on that we as public do not know anything about.

Banks are getting billions of bail out money, approving no loans, increasing their fees and interests on existing accounts and all we read in news is that banks are in trouble!

Back in 2004-2005, they pocketed billions of dollars as processing fees / commission and whatever fancy name they came out with for mortgage paper work, property code and so on. A very few people in their top executive positions cut hundreds of millions as bonuses and they were very happy. The funny thing is that they still get the same bonuses and asking for more bail out money. 

Are these banks really in trouble or this is only a front for creating fear in public to make even more money?
Where did all these money go? Who is having big parties?

What do you think?
  
 
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