Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

4/23/2013 (1 year ago)

Catholic Online (www.catholic.org)

The banking and credit systems have become odious.

In the court of public opinion, banks have been losing badly. Ever since the 2008 financial crisis, their billion dollar, taxpayer-funded bailouts, and their thanks to the people expressed by means of raising fees, banks are among the least popular institutions in the country. So why do we need them?

The banking and credit systems have become deliberately burdensome to consumers because it's more profitable to be so.

The banking and credit systems have become deliberately burdensome to consumers because it's more profitable to be so.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

4/23/2013 (1 year ago)

Published in Business & Economics

Keywords: banks, fines, evil, manipulation, fraud, ethics, credit, fees


LOS ANGELES, CA (Catholic Online) - The banking system is a racket, and you have to pay to play. Want to buy a house? You can either work for 30 years to save up enough to pay cash, or you will need a loan with interest. Same deal with a car or most other big-ticket items.

Of course, to qualify for a home loan, you'll need to establish credit, which is another racket altogether. Your credit score reflects how well you play the game financial institutions concocted to make you pay. If you want a good score, you have to obtain credit cards and pay annual fees, but don't use them hardly at all. If you do, you'll pay interest for the privilege.

Many people, fed up with what they feel is an unfair system designed to feed banker's greed, have resorted to non-traditional banking methods, including cash-only.

However, if a person chooses to deal only in cash, they can kiss their credit score goodbye. That's not a problem if you're a good saver and can afford to deal in cash, but very few people can manage that in practice.

Of course, even those who deal in cash encounter banks at some point. Want to cash a check? That's a fee. Need a money order? Another fee. Do you receive public assistance? It's deposited onto a bank card.

Do you need to make a payment online? Online payments were once free because they didn't require labor or infrastructure to process. Now, you pay just for the privilege of to paying. Fees of ten dollars or more are now ubiquitous.

Do you pay a little extra on your car loan? Great, that extra won't be applied to the principal. Instead, they just apply it to next month's payment. There'll be no saving on the interest if they can help it.

All of these fees and such are designed to get you to the bank, sooner or later. Once a consumer is in the bank, there are more fees. Fees for checking, mandatory minimums for savings, and so on.

Ultimately, banks serve as a place to store your money, and you pay them for the privilege of using your money to generate interest for themselves.

Of course, inside the bank, there's a scheme to part you with even more money. In addition to monthly fees, the system itself is designed to cheat you. Commonly, big debits come out first, which can overdraw an account, and forbid an overdraft, or two, or three because of it.

Banks make the rules so sooner or later, we all must pay, such is the nature of the business.

With the greedy disposition of banks, it's no surprise that many Americans are turning to credit unions and other non-traditional systems for managing their money. For many Americans, they simply pay the inconvenient "convenience fees" and deal in cash.

Others have found credit unions provide the right answer to the greed of the big banks. However, even credit unions charge fees and they also require a mandatory minimum deposit, although that amount is usually small.

No matter what, we live in a capitalist society. In this society you are expected to work hard, then pay your taxes. In addition to taxes, you are also expected to pay fees to private institutions, just to spend and manage your money.

Freedom is a wonderful thing and capitalism is filled with opportunity for the enterprising soul. However, what happens when the system is so pervasive and so perverse that that someone who starts poor is literally kept down by rules designed to part you from your money before you can even spend it?

Why are Americans punished for choosing to avoid banks, to avoid the credit racket, and to simply deal in cash?

Welcome to the new America where the banks make the rules and you pay to play. Don't like it? Too bad, it's tough to be poor.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2014
Sports:
That sports may always be occasions of human fraternity and growth.
Lay Missionaries: That the Holy Spirit may support the work of the laity who proclaim the Gospel in the poorest countries.



Comments


More Business & Economics

The buck does stop here: Chinese currency set to close the gap between it and the dollar Watch

Image of A new study from China indicates that the Chinese yuan is likely to become the third most used international currency by 2019.

By Catholic Online (NEWS CONSORTIUM)

China's currency, the renminbi (RMB), is looking to become the third-largest international currency behind the U.S.'s dollar and the euro by 2019 said the Renmin University of China in a report published on July 20. LOS ANGELES, CA (Catholic Online) - Last year, ... continue reading


Financial consultant warns that U.S. is entering third largest stock bubble Watch

Image of A new study by financial consulting firm Smithers & Co. warns that the U.S. is entering another major stock bubble, the third largest in U.S. history.

By Catholic Online (NEWS CONSORTIUM)

A new research report by financial consultant Andrew Smithers, chairman of Smithers & Co., suggests that the U.S. is in the midst of another stock-market bubble, much like the bubbles in 1853, 1906, 1929, 1969 and 1999. LOS ANGELES, CA (Catholic Online) - ... continue reading


WARNING: The most important article you may ever read - We need a moral revolution at the top, before pitchforks appear in the street Watch

Image of In the game of plutocracy you start by owing money to the bank and as it progresses, you owe more.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

An article published in 2011 in Forbes is making the rounds again and people are talking, but despite the dust on the copy, it's a timely conversation. The article by Brendan Coffey reveals that there are four companies that control 147 other companies and those 147 ... continue reading


U.S. to shortly overtake Saudi Arabia, Russia in production of natural oil Watch

Image of In Texas and North Dakota, oil extraction is soaring at shale formations as companies split rocks using high-pressure liquid in a process known as fracking.

By Catholic Online (NEWS CONSORTIUM)

The United States has often found itself at the mercy of unstable nations for the majority of its oil imports. That day may soon be past after American begins the extraction of energy from shale rock, eventually overtaking both Saudi Arabia and Russia in oil ... continue reading


Unemployment among black Americans twice that among whites Watch

Image of The jobless rate among whites last month was 6.6 percent; among blacks, 12.6 percent. The unemployment rate for blacks has averaged about 2.2 times that for whites.

By Catholic Online (NEWS CONSORTIUM)

When African-Americans marched on Washington in 1963, it was under the banner of "Jobs and Freedom." There remains a great inequity with the former; the number of unemployed blacks in America remains twice as much as whites, and has remained that way for ... continue reading


Don't read this if you enjoy shrimp -- and hate slavery Watch

Image of Forced to work on old fishing boats, slaves work 20-hour days, often with drugs to keep them going. They are not paid, having been bought and sold into the industry.

By Catholic Online (NEWS CONSORTIUM)

A shocking investigative report from The Guardian reveal that virtually all shrimp harvested in Thailand is in some way a product of slave labor, and that much of this shrimp ends up in the mainstream food supply chain. If you eat shrimp, it is likely you are consuming ... continue reading


How bad is it? So bad even the capitalists are quoting Marx Watch

Image of IMF managing director Christine Lagarde gave a keynote address where she quoted Karl Marx.

By Catholic Online (NEWS CONSORTIUM)

The elites of the free world may be awakening to the fact that their unfettered pursuit of more is perhaps the single greatest existential threat to their existence. At a recent invitation-only conference in London, several billionaires as well as the head of the IMF ... continue reading


Yes, corporate tax havens cost you too! Watch

Image of It's common and it cheats millions of their due.

By Catholic Online (NEWS CONSORTIUM)

Surprise, surprise, surprise!  The same day Cardinal Maradiaga condemned unethical business practices that do nothing to help those at the bottom of society, a report was released that shows a majority of Fortune 500 companies stash their money offshore to avoid ... continue reading


America is now more appealing to manufacturers than Germany Watch

Image of German manufacturing firms are finding America an increasingly appealing place to open factories, because of the low price of business.

By Catholic Online (NEWS CONSORTIUM)

Many workers in the United States may agonize over growing job losses thanks to low-cost workers in India or China. For many in Germany, the U.S. may take that role thanks to the low cost of energy. LOS ANGELES, CA (Catholic Online) - The U.S. is the new global ... continue reading


Seattle approves $15 minimum wage Watch

Image of Seattle residents gathered to support the measure to increase the city's minimum wage to $15 an hour.

By Catholic Online (NEWS CONSORTIUM)

In a historic move, they city council of Seattle voted unanimously to raise the minimum wage to $15 per hour, which is twice the U.S. required minimum wage. LOS ANGELES, CA (Catholic Online) - The decision will go into effect next year, and through the next three ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Jeremiah 2:1-3, 7-8, 12-13
1 The word of Yahweh came to me, saying,2 ... Read More

Psalm, Psalms 36:6-7, 8-9, 10-11
6 your saving justice is like towering mountains, ... Read More

Gospel, Matthew 13:10-17
10 Then the disciples went up to him and asked, 'Why ... Read More

Saint of the Day

Saint of the Day for July 24th, 2014 Image

St. John Boste
July 24: One of the Forty Martyrs of England and Wales. He was born at ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter