Why are banks failing?

I'm a complete noob on the subject but it is concerning to me that this keeps happening. The economy is not doing well but I still don't have a good grip on what makes the banks fail. Obviously the housing market is not helping, but what is making the bottom fall out so frequently right now?

The banks are lending out too much money and not getting it back?

Lol Bankrupt

Is has a lot to do with a culture of limited if any oversight and short term gain oriented lending practices. Its so huge, I don't think even the best analysists have a total grip on it at this point. At home I have a bunch of stuff, I know I say this all the time, but I will try to look up at least some material that might be helpful. I know Bill Moyers has focused on it a lot recently on his weekly Journal on PBS (http://www.pbs.org/moyers/journal/index-flash.html).

They're charging too much interests.

That causes people to save their money under their matress....which is bad since they gonna end up using that money to pay their mortgages.

2 more years till I become a Home owner. Gotta build my credit line to above average.

I don't really think people are literally hording cash in their homes, at least not enough to have an impact. High rates combined with a shit economy causes people to either go default on the loans they have and people are not getting as many loans for things likes houses and cars, which hurt the banking industry. Look around your area, how many homes are for sale and have been for some time? How backed-up in older models are the car dealers in your area?

Credit Cards use is also down, people simply aren't buying luxuries they can't outright pay for.

Well, the housing market hole we've dug ourselves into is somewhat the fault of subprime loans. Couple that with what others have said (Robtard) and you have people who couldn't afford their loans. (shortsightedness on the side of the lenders...inimilst said that.)

I think it's retarded that we even ended up in a shit situation like this. It's kind of stupid. Even teens without jobs SHOULD know not to spend more than you can. Shame on the lenders for being too greedy and stupid.

Bank A lends 1,000,000, dollars to people with bad credit histories (i.e. they've got a history of not paying back loans.)

Bank A then sells the mortgage contracts in bundles to other banks...however neither Bank A nor the other Banks are aware of how much of the Loans will be paid back in full.

When the hook-year of the loan ends and payments have to increase poorer people find they can't pay back the loan- thus banks are loosing billions.

And, since noone knows whos got good credit and whos got bad credit the banks are reluctant to lend to each other- thus, it is all going horribly wrong.

cos thats what the elite want

Just to sort of echo a Deano sentiment, but not the statement, the people at the tops of these banks aren't hurting. As a business, banks really are nothing but profit for the entities that own and run them. The banking industry in the US makes 57 billion dollars a year in overdraft fees alone.

Originally posted by Deano
cos thats what the elite want

No, it's what the Keelzods want. The "elite" conspiracy is something spoon fed to itching ears so you want look further and find the real problem. The "elites" are just a mask or cover for the Keelzods. We can measure and observe the effects of the elites, which is the point. They're just the puppets of the Keelzods. So, yes, we end up with puppets who are puppets to those who are puppets to another.

Originally posted by Devil King
Just to sort of echo a Deano sentiment, but not the statement, the people at the tops of these banks aren't hurting. As a business, banks really are nothing but profit for the entities that own and run them. The banking industry in the US makes 57 billion dollars a year in overdraft fees alone.

And 23.6 billion in other accounting fees and $106 billion in rounding.

its all controlled. thats what it says on the dollar bill right. order out of chaos

Originally posted by Devil King
in the US makes 57 billion dollars a year in overdraft fees alone.

Which is why I am really confused...

Originally posted by Deano
its all controlled. thats what it says on the dollar bill right. order out of chaos

"Controlled" isn't exactly wrong, but your lizard men and ancient super societies goes to far into the wacky-end of it.

If the "puppet masters" are creating chaos in order to sell their type of (unconditional) order, why would they drop a hint on the dollar bill? So the true geniuses (aka conspiracy hounds) have an easier time figuring it out?

Originally posted by Robtard
"Controlled" isn't exactly wrong, but your lizard men and ancient super societies goes to far into the wacky-end of it.

If the "puppet masters" are creating chaos in order to sell their type of (unconditional) order, why would they drop a hint on the dollar bill? So the true geniuses (aka conspiracy hounds) have an easier time figuring it out?

Why do men write their name in the snow? 😉

the problem is that banks, in order to lend money to you, actually borrow it from other banks (usually central banks)...but they are loaning less money to the smaller banks and thus the smaller banks are loaning less money to people...and thus are making less money

this coupled with the fact that most banks hold their reserves in US dollars (regardless of which country the bank is in) and the fact that the dollar is fast becoming worthless is causing massive problems

Originally posted by jaden101
the problem is that banks, in order to lend money to you, actually borrow it from other banks (usually central banks)...but they are loaning less money to the smaller banks and thus the smaller banks are loaning less money to people...and thus are making less money

this coupled with the fact that most banks hold their reserves in US dollars (regardless of which country the bank is in) and the fact that the dollar is fast becoming worthless is causing massive problems

I didn't know that last little tid bit. I learned something today.

Originally posted by Robtard
, why would they drop a hint on the dollar bill?

to laugh in your little face.

Originally posted by Deano
to laugh in your little face.

Sheer genius.

Well, it all comes down to what I said in my simple little sentence. 😄

And I do believe the Middle class is getting cut right out. It will be the "Haves," and the "Have nots."