Wednesday, February 23, 2011

banks net 21.7 billion in profits for 4th quarter

Here is an interesting development.  The banks net profit of 21.7 billion dollars as they continue to push harder for foreclosures.  Now what is the issue?  Are the banks not willing to negotiate mortgages because it will lead to more profits or is there some issue with the servicers and their representatives making more money for foreclosing? 

I don't know but it certainly seems like the banks could easily end the housing crisis without even being close to losing money.  Certain Modifications would make them more money in the long run but the servicers would profit less in the short run.

Whatever is going on makes absolutely no sense whatsoever.  The banks were bailed out they are on to billions in dollars of net profits and they can't even negotiate to keep a few people in their homes.  The moral hazard argument is a joke because anything to do with moral hazard was thrown out the window when the TBTF banks came to the government begging for a hand out.  Well actually they were threatening world collapse if they didn't get unlimited funds. 

I am sure we all could be doing quite well after getting a bailout and access to unlimited cash at 0% interest.  But evidently when you get to congress you are beholden to the banks and you pretend to actually believe anyone from the banks will actually do the right thing. 

It reminds me of me paying $3.30 a gallon in gasoline as the oil companies make all time record profits. 


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