Evergreen Colorado Real Estate

MONEY, CREDIT AND THE BANKING SYSTEM

We all remember when George Bailey, in the movie “It’s a Wonderful Life,” described the banking system, when there was a run on the Bailey Savings and Loan. He told his depositors that there money was not in the bank vault, but had been loan out to their neighbors to buy or build their homes. In other words, Grandpa and Grandma, deposit $1000.00 in their savings account, and the Bailey Savings and Loan pays them say 3% interest. The Bailey Bank then loans the money out to You, to buy Your home, and you pay the bank 5% in interest. The 2% difference becomes the Bank shareholder’s profit less bank overhead and supervision.

Grandpa and Grandma had worked very hard for the $1000.00 they deposited, so the money represented labor, productivity, and value added. In contrast, today, the Federal Reserve has a 10% reserve requirement, which means that they will need to hold on to the $1000.00, but then can loan out $10,000. Your local bank, along with the Feds just created $9000.00 out of thin air. Now they loan out the $10,000 and collect 5% interest on the 10k, which means you are paying interest on “thin air money,” or fiat money. This is the formula for hyper inflation and a devalued dollar. It’s the same as if you mixed 20 cans of water with one can of concentrated orange juice – you would dilute the entire flavor out of it. This is what Volcker, Greenspan, and Bernanke have been doing for over 25 years. The house of cards is tumbling down.

The good news is that in order to straighten out the mess the Treasury and the Federal Reserve have decided to drive the home mortgage rates low in an effort to clean up the housing inventory problem. EVERGREEN COLORADO REFINANCE and CONIFER COLORADO REFINANCE rates are at historic lows. Please, call us for a FREE no obligation Quote and let’s drive Your EVERGREEN COLORADO HOME LOAN rate or You CONIFER COLORADO HOME LOAN rate down as low as possible. We are at 303-674-0148, Email us at markenglishrealestate@msn.com or on the web at www.evergreencoloradoliving.com