TAKE IT TO THE BANK

77 comments

Posted on 17th November 2013 by Administrator in Economy |Politics |Social Issues

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iStock 000016651896Small 2 300x199 What to Do When Your Bank Branch Closes

Reports like the recent one from SNL Financial – Branch Networks Continue to Shrink really get my goat. As I travel the increasingly vacant highways of Montgomery County, PA I’m keenly aware of my surroundings. If I were a foreigner visiting for the first time, I’d think Space Available was the hot new retailer in the country. I’ve detailed the slow disintegration of our suburban sprawl paradise in previous articles:

Available

Are you Seeing What I’m Seeing?

More than 30 Blocks of Grey and Decay

Extend & Pretend Coming to an End

Thousands of Space Available signs dot the bleak landscape, as office buildings, strip malls, and industrial complexes wither and die. Gas stations are shuttered on a daily basis as the ongoing depression results in less miles being driven by unemployed and underemployed suburbanites. At least the Chinese “Space Available” sign manufacturers are doing well. The only buildings doing brisk business are the food banks and homeless shelters.

 

The sad part is that I live in a relatively prosperous county with a low level of SNAP recipients and primarily occupied by a white collar college educated populace. If the clear downward spiral in my upper middle class county is an indication of our country’s path, the less well-off counties across the land must be in deep trouble.

While hundreds of thousands of square feet of retail, restaurant, office and industrial space have been vacated in the last six years, the only entities expanding in my area have been banks, drug stores, municipal buildings and healthcare facilities. I have been flabbergasted by what I’ve viewed as a complete waste of resources to create facilities that weren’t needed and wouldn’t be utilized. I have seven drug stores within five miles of my house. I have ten bank branches within five miles of my house. While two perfectly fine older hospitals in Norristown were abandoned, a brand new $300 million super deluxe, glass encased Einstein Hospital palace was built three miles away by a barely above junk bond status non-profit institution. None of this makes sense in a contracting economy.

This is another classic case of mal-investment spurred by the Federal Reserve easy money policies, zero interest rates, and QEternity. Cheap money leads to bad investments. I’m all for competition between drug store chains and banks. CVS, Walgreens, and Rite Aid are the three big chains in the country. I have my pick of multiple stores close to my house. There are clearly too many stores competing for a dwindling number of customers, with a dwindling supply of disposable income. The only reason Rite Aid is still in the picture is the easy money policies of the Federal Reserve. They have been teetering on the verge of bankruptcy for the last five years, but continue to get cheap financing from the Wall Street cabal, who would rather pretend they will get paid, than write-off the bad debt. Who in their right mind would continue to lend money to a company with $6 billion in debt, NEGATIVE $2.3 billion of equity, and losses exceeding $2 billion since 2008? They are the poster child for badly run businesses that over expanded, took on too much debt and should be liquidated. There are over 4,600 zombie Rite Aid stores littering the countryside waiting to be put out of their misery.

the walking dead season 4 rick grimes  rite-aid-corner-abandoned

Rite Aid will never repay the $6 billion of debt. They know it. Their auditors know it. Their Wall Street lenders know it. The Federal Reserve Bank regulators know it. Anyone with a functioning brain knows it. Tune in to CNBC for those who are paid to keep clueless investors from knowing it. Interest rates that actually reflected risk and weren’t manipulated to an artificially low level by the Federal Reserve would make financing for a dog like Rite Aid a non-starter. Creative destruction would be allowed to work its magic, with winners separated from losers. Instead Rite Aid continues as a zombie entity, barely surviving for now. This exact scenario applies to J.C. Penney, RadioShack, Sears and a myriad of other dead retailers walking. Rather than suffering the consequences of appalling management judgment, dreadful strategic decisions, and reckless financial gambles, they have been allowed to remain on life support compliments of Bernanke, his Wall Street chiefs, and the American taxpayer.

In a truly free, non-manipulated market the weak would be culled, new dynamic competitors would fill the void, and consumers would benefit.  Extending debt payment schedules of zombie entities and pretending you will get paid has been the mantra of the insolvent zombie Wall Street banks since 2009. The Federal Reserve is responsible for zombifying the entire country. And it wasn’t a mistake. It was a choice made by those in power in order to maintain the status quo. The fateful day in March 2009 when the pencil pushing lightweight accountants at the FASB rescinded mark to market accounting rules gave birth to zombie nation. And not coincidently, marked the bottom for the stock market. Wall Street banks were free to fabricate their earnings, pretend they didn’t have hundreds of billions in bad loans on their books, and extend the terms of commercial real estate loans that were in default. With their taxpayer funded TARP ransom, ability to borrow at 0% from Uncle Ben, and the $3 trillion of QE cocaine snorted up their noses in the last four years, the mal-investment, fraud, and idiocy of the Wall Street drug addicts has reached a crescendo.

Commerce Bank

The mal-investment by zombie drug store chains has only been exceeded by the foolish, egocentric, insane bank branch expansion by the Too Big To Trust Wall Street CEOs. In the last ten years dozens of bank branches have been built in the vicinity of my house and across the state of Pennsylvania. These gleaming glass TARP palaces are on virtually every other street corner across Montgomery County. Stunning, glittery, colorful branches stuffed with bank employees pretending to loan money to non-existent customers. They have become nothing but a high priced marketing billboard with an ATM attached. By 2010, the number of bank branches in this country had reached almost 100,000. The vast majority are run by the usual insolvent suspects:

Wells Fargo – 6,500

J.P. Morgan – 6,000

Bank of America – 5,700

The top ten biggest banks, in addition to holding the vast majority of deposits, mortgages and credit card accounts, operate 33% of all the bank branches in the country. The very same banks that have paid out $66 billion in criminal settlement charges over the last three years and have incurred $103 billion of legal fees to defend themselves against the thousands of actions brought by victims for their criminal misdeeds, decided it was a wise decision to open new bank branches from 2007 through 2010. Only an Ivy League educated MBA could possibly think this was a good idea.

It was almost as if the CEO’s of the biggest Wall Street banks didn’t care about pissing away the $2.5 million to build the average 3,500 square foot bank branch, which would require $30 million of deposits to breakeven. This level of deposits isn’t easy to achieve when your customers are unemployed due to your bank destroying the American economy, broke due to their real household income declining by 10% over the past fourteen years, and your bank paying them .15% on their deposits. It also probably doesn’t help when you charge them $3 every time they withdraw their own money from your bank and you charge them $25 when their bank balance falls below $1,000 because they just got laid off from Merck on Christmas Eve. It is now estimated that one-third of all bank branches in the country lose money. Who can afford to run something that consistently losses money, other than our government? Wall Street bankers can when the taxpayer is footing the bill and Bernanke/Yellen subsidizes their mal-investment by lending to them at 0%, providing them $2.5 billion per day of QE play money, and paying them $5 billion per year in interest to park the excess reserves that aren’t getting leant to small businesses and consumers at their thousands of gleaming bank branches.

Hasn’t one of the thousands of highly educated MBA vice presidents occupying offices at the Too Big To Control Wall Street banks explained to Stumpf, Dimon and Monyihan that bricks and mortar are dead? A new invention called the internet has made in-person banking virtually obsolete. Why does anyone need to go into a bank branch in this electronic age? I’ve been in my credit union branch five times in the last ten years, twice for a refinance closing on my home and a couple times to get a certified check. With ATM machines, direct deposit and on-line bill paying, why would the country need 100,000 physical bank locations? I pay 90% of my bills on-line. If I need cash, I hit the ATM at Wawa, where there are no ATM fees (my credit union doesn’t charge me to get my own money). The only people who go into bank branches on a regular basis are old fogeys that don’t trust that new-fangled internet. The older generations are dying out and the millennial generation has no need for bank branches. Their iGadgets function as their bank connection. Plus, since they don’t have jobs or money, a bank account at the local bank branch of J.P. Morgan seems a bit trite.

The writing had been on the wall for a long time, but the reckless bank executives continued to build branches in an ego driven desire to outdo their equally irresponsible competitor bank executives. Now the race is on to see which banks can close the most branches. Bank consultant Jim Adkins succinctly sums up the pure idiocy of physical bank branches:

“There’s almost nobody in the branches. You could shoot water balloons all over the place and not hit anybody.”

It seems my humble state of Pennsylvania leads the pack in closing branches in the past year, with 149 abandoned and only 43 opened. Only two states in the entire country had more branch openings than closings.

After shuttering 2,267 branches in 2012, the industry is on track to closing another 2,500 in 2013. Shockingly, the leader of the Wall Street zombie apocalypse, Bank of America, led the pack in bank branch closings with 194 in the last year. Staying true to his hubristic arrogance, Jamie Dimon actually opened 62 more branches than he closed in the last year, despite his upstanding institution having to pay tens of billions in fines, settlements and pay-offs for their criminal transgressions.

There are now 93,000 bank branches remaining in this country, and one third of them don’t generate a profit. That percentage will grow as the older generations rapidly die out and are replaced by the techno-narcissists who never leave their family rooms.  Online banking already accounts for 53% of banking transactions, compared with 14% for in-branch visits. Younger bank customers increasingly prefer online and mobile banking, as advancing technology enables them to make remote deposits, shop for loans and manage accounts more efficiently from their desktops or smartphones. This trend will only accelerate in the years to come.

Banking industry profits reached a record level of $141 billion in 2012 as more vacancy signs appeared on Main Street. Now that the Wall Street cabal have syphoned every ounce of blood from their customers/victims through ATM fees, overdraft fees, minimum balance fees, credit card fees, late payment fees, and paying no interest on deposits, they are forced to focus on the $300,000 average loss per bank branch. QE and ZIRP might not last forever. Yeah right. AlixPartners, a New York consulting firm, expects the number of bank branches to drop to 80,000 over the next decade. They are wrong. They have failed to take into account the lemming like behavior of Wall Street banks. As their accounting gimmicks to generate fake profits dissipate, the increasingly desperate insolvent zombie banks will rapidly vacate their prime corner locations in droves. With approximately 30,000 locations already generating losses, the Wall Street MBAs will be closing branches quicker than you can say “mortgage fraud”. There will be less than 70,000 branches within the next five years. That means another 20,000 to 30,000 Space Available signs going up on Main Street. That means another 200,000 to 300,000 neighbors without jobs. But don’t worry about Jamie Dimon and the rest of the Wall Street bankers. They’ll be just fine. In addition to being endlessly fed by the Fed, they’ll get creative and charge their customers a new bank branch access fee of $50 for the privilege of entering one of their few remaining outlets. By now we should know how cash flows to Main Street in this corporate fascist paradise.

140226 600 Cash Flow cartoons

Do your part to starve the beast. Move your bank accounts to a local credit union. Don’t support criminals.

 

77 Comments
  1. porter says:

    Do your part to starve the beast, quit using fed money. Don’t support criminals.

    17th November 2013 at 2:02 pm

  2. Welshman says:

    Admin.,

    Spot on, we have five pharmacies a mile from my home. Two pharmacies in each large grocery store, and CVS, Rite Aid, and Walgreen whilch peddle drugs and crap food.

    17th November 2013 at 2:11 pm

  3. Jay says:

    I’m slowly becoming a doomsday pepper and soon plan on stockpiling mass amounts of non perishable foods courtesy of my newly mined EBT card coming through the mail.

    But with the rest of the world reliant on American consumerism to maintain their economies, and the ruling class having hijacked the global system, does anyone really think the collapse is imminent? I still think we are 10-20 years away from a total upheaval.

    Thoughts?

    17th November 2013 at 2:14 pm

  4. Administrator says:

    Jay

    It’s mathematically impossible for the current paradigm to continue for 10 or 20 more years. Therefore, it will collapse. It will happen within the next five years.

    17th November 2013 at 2:32 pm

  5. Chicago999444 says:

    Could it possibly be that we never really COULD afford the Suburban Sprawl lifestyle and the fungus-like proliferation of regional malls, power centers, strip malls, service stations, fast food pits that define the suburban landscape, and that the sooner this crap dies and is dismantled, the faster we will recover…. but not exactly to the same level of credit-fueled waste and overconsumption that has characterized life here in the USA since 1950.

    Peel the onion and research the financing and construction of just a few of your local regional malls, often located across the street from each other, or your power centers 2 miles from each other, and 5 will get you 10 that your local taxes paid for them at least in part. Well, suburban house taxes have tripled in some places in the past 10 years, and you can see a direct connection between the hikes in the local property taxes and the number of new shopping malls side-by-side older establishments with their 40% vacancy rates.

    This crap was built and funded by taxes because all us sheeples out here wanted “growth”, without bothering to define that term. In 1964, a year in which I remember this country was more truly prosperous and financially secure, with sound money and good jobs, there were 4 sq ft of retail space for each man, woman, and child. I don’t remember there being any shortage of places to shop, or fine retail goods.

    By year 2008, there were 38 sq ft of retail space per man, woman, and child in the U.S. Tell me how this ever helped our economy. All the proliferation of redundant retail did is add to the load of never-to-be repaid debt, and suck up future capital that would be better allocated to developing the technologies and industries we will need to mediate a future of steep resource decline.

    17th November 2013 at 3:06 pm

  6. glort says:

    A new invention called the internet has made in-person banking virtually obsolete. Why does anyone need to go into a bank branch in this electronic age?

    well, when I need cash, or to make a wire transfer, I go in person to my bank so I don’t pay surcharges.
    I do no banking online. too much exposure to fraud

    17th November 2013 at 3:25 pm

  7. AWD says:

    Jay joins the FSA, part of the problem, not part of the solution. Using money stolen from me, admin, and Llpoh to buy preps that some of your FSA brethren will knife you in the throat to take. Well done.

    There’s so many pharmacies because 50 million people have SNAP cards, and “medical cards”, which is FSA-ese for free medical care and free meds (aka Medicaid). Obamacare is adding millions more. And the geezers, especially the obese baby boomers, are on 12 meds a day that are, like everything on Medicare, at “no cost to you”, ie, free. Take the government free shit out of the equation and 1/2 the pharmacies or more would be out of business overnight.

    So many people are getting money from the government, in one form or another (50% of the
    population), and there is so much fraud, that they have way more disposable income than they are
    earning. People that don’t get money from the government, and are honest and actually work for a living are facing higher prices for everything and are barely getting by. I’ve posted several items that there is actually more poverty in the suburbs now than in the cities. People are sliding through the cracks.

    Then, of course, there are taxes. People in the socialist state of Illinois just bulldoze their buildings or homes, instead of paying exorbitant taxes. Takes care of the excess of real estate.

    17th November 2013 at 3:37 pm

  8. AWD says:

    People moved out of the cities, and built the suburbs to escape black and Mexican crime and victimization. They put up with commutes and losing 20 hours of their lives and hundreds of dollars a week because they wanted to live someplace safe. But the silent tax, inflation, is bleeding them dry. And people are driving Japanese and Korean cars to work, and buying Chinese crap, and shipping $500 billion out of the country every year, so they are cutting their own throats.

    As our economy contracts, then collapses, all these service industries–banks, insurance companies, restaurants, big box stores, and all the rest will go belly up. The supply chain will collapse, and then people will realize how fragile it all was, and how all their bad decisions–from becoming obese and destroying their health, to buying a Lexus, to being in debt, to supporting socialists was a really bad idea. And people always pay, and pay dearly, for bad decisions.

    17th November 2013 at 3:47 pm

  9. AWD says:

    Face of US poverty: These days, more poor live in suburbs than in cities
    http://www.csmonitor.com/USA/Society/2013/0911/Face-of-US-poverty-These-days-more-poor-live-in-suburbs-than-in-cities

    Poverty in the suburbs: Hidden and growing
    http://www.cbsnews.com/8301-505123_162-57595032/

    Cul-de-Sac Poverty
    http://www.nytimes.com/2013/05/21/opinion/cul-de-sac-poverty.html?_r=0

    17th November 2013 at 3:52 pm

  10. archie says:

    10-20 years? uh, no. if the shit-show we call an economy grinds on for another 2 i’d be surprised.

    17th November 2013 at 3:55 pm

  11. Jay says:

    I joined the FSA after three years of resisting after opening my eyes to the wasteland of Uncle Sam’s plantation.

    However, I still pay some taxes from my $1600/month salary working at a nightclub in the most liberal filth of all: Southern Cali. I also contribute to the patriot cause by posting anti-establishment comments on major media websites.

    In my view, mathematics play no part in a fiat currency system that spans worldwide. The Chinese are complicit in the corruption because they are addicted to exports the same way we’re addicted to consumerism. The Saudis and Iranians are also complicit by allowing all oil purchases to be done with the dollar. Therefore, even the next meltdown can be patched together as long as the superpowers allow it to be.

    I do think we need an uprising on a massive scale to completely change the system, but I am young and still clinging to the American dream and want the empowerment of millions before it all blows up.

    Wishful thinking I suppose : /.

    For now, I’ll just keeping banging mad sluts at the club and getting high as fuck while eating Quiznos. Southern Cali consumerism at it’s finest! Weed, coke, acid, hot pussy, loud music, free bottles, and GMO altered foods while swirling in the cesspool of faggots and liberals and a big M for McDonalds hanging over me every night when I walk to the club.

    17th November 2013 at 4:18 pm

  12. Administrator says:

    Jay

    I’ve been trying to expand my demographic to mad slut banging, drug addicted, strip club employees. Looks like I’ve succeeded.

    Now if I could just capture the pedophile demographic, TBP will have made the big time.

    17th November 2013 at 4:41 pm

  13. R says:

    The financial collapse will take place after your affordable health care bill is fully implemented.
    Source, lindsey williams . Much love people!

    17th November 2013 at 4:49 pm

  14. Administrator says:

    glort

    Bullshit.

    I’ve been paying my bills online for over a decade. I don’t pay one dime for the service. It saves the cost of the stamp and I’ve never had a bill that didn’t get paid on time.

    My credit union doesn’t charge for ATM withdrawals. I withdrawal my cash needs at Wawa. They don’t charge for ATM transactions. Zero cost.

    What exposure to fraud? You’re just a fearful old timer who doesn’t know what he is talking about.

    You probably fight the closing of Post Offices too.

    17th November 2013 at 4:51 pm

  15. R says:

    I strongly hope you Americans will read about the health care bill! It’s to make you slave to your government! Hope everything works out for you, remember knowledge is power! Much love from Norway

    17th November 2013 at 5:02 pm

  16. Jay says:

    At least you got a Milennial to open his eyes!

    17th November 2013 at 5:11 pm

  17. llpoh says:

    Jay says “mathematics play no part in a fiat currency system that spans worldwide”.

    Jay, you need to lay off the weed. It all comes down to math – more has been promised than can be paid for. There is “A” amount of money, and “B” amount of money promised.

    B > A (money promised is greater than money available), by a very great margin. The “B” promises are coming due rapidly (boomers, govt drones retiring, Obamacare, etc), and the amount left of “A” is dwindling rapidly. When “A” runs out, then those counting on “B” will find themselves shit out of luck. “A” is finite, and “B” is damn near infinite.

    Math sucks. And Jay simply chooses to ignore math, like so many other sheeple.

    17th November 2013 at 5:13 pm

  18. Administrator says:

    According to the trade publication National Petroleum News, the station count—which includes public fueling stations, marinas, convenience stores, gas stations, and hypermarkets that sell gas (e.g., Costco)—was 156,065 at the end of 2012, down 1,328, or about 1 percent, from 2011. That marked the seventh consecutive year of decline. Since 2002, the station count has fallen by nearly 14,000, or about 8 percent.

    17th November 2013 at 5:22 pm

  19. Administrator says:

    Looks like that mongoloid sheep fucker – David Pierre – is trolling the site casting thumbs down. He’s waiting for this article to be posted on Zero Hedge so he can be the first commenter with his tired 9/11 drivel. He will be buried under an avalanche of thumbs down.

    Time to practice your banjo David Pierre. Say hi to your sister/mother for me.

    17th November 2013 at 5:43 pm

  20. AWD says:

    Apparently, mathematics played no part in Jay’s eduction either.

    It’s nice to have a card-carrying member of the FSA on TBP (Jay).

    If he’s the future of this country, we’re screwed.

    17th November 2013 at 6:06 pm

  21. bb says:

    To ADMIN, AWD , I am glad you guys found someone else to pick on.Thank God in Heaven.Free at last.

    17th November 2013 at 7:03 pm

  22. SSS says:

    There are 3 drug stores and 7 bank branches within 1 mile of my house. And I live in the upscale foothills of Tucson, where 20 years ago you had to go 3-4 miles into the city to find either.

    “I pay 90% of my bills on-line. If I need cash, I hit the ATM at Wawa, where there are no ATM fees (my credit union doesn’t charge me to get my own money). The only people who go into bank branches on a regular basis are old fogeys that don’t trust that new-fangled internet.”
    —-Admin

    Old fogeys, indeed. You snot-nosed whippersnapper!!!! We do ALL of our bills online, 100%, and get all of our cash free at ATMs. If the post office collapsed tomorrow, we wouldn’t care. All we get in the mailbox are flyers from local businesses (sometimes useful for savvy shoppers) and charity solicitations.

    We’re wired, baby, wired.

    17th November 2013 at 7:31 pm

  23. Richard Wax says:

    I do all my banking, bill paying, etc through the internet. My business is computer security. I can understand Glort’s concern, and its valid. But just because you do all your banking in a bank, does not make your money safe. Safer maybe, but not safe. Admin, your a little naive on this subject. Before you tell me to blow you, I do respect your writing and financial perspective. We are losing the battle against teams of very smart people who’s sole job is to infiltrate computer networks. We fix one exploit and two more come about. We are literally on the brink of a major if not catastrophic event due to these state sponsored actions. Why build aircraft carriers when you know you can literally bring down the United States by stopping the flow of money. No admin, I will not blow you. Maybe David Pierre will. Oui Oui.

    17th November 2013 at 7:37 pm

  24. Duh, Duh, Duh, David Pee-Error says:

    Nice to get some recognition once again on your website, Administrator….

    I don’t care what you or the other TBPers say about me as long as you spell my name right.
    The last name is Pee-Error. That’s Pee as in pee pee which rhymes with wee wee.

    And as for my wife, Ewe… why she and I are the proud parents of three Black sheep.

    17th November 2013 at 8:36 pm

  25. AWD says:

    bb

    It’s far too soon and premature to pass the mantle of TBP village idiot to Jay, just yet. We’ll have to see how thing go. You’ve dug yourself quite a hole, and Jay is certainly digging himself deeper, but TBP is big enough to welcome two village idiots, if it should come to that.

    17th November 2013 at 8:41 pm

  26. llpoh says:

    AWD – the village has expanded, for sure. But two village idiots? I mean, what if they BREED? That cannot be permitted.

    No, sir, one idiot per village. That is the rule.

    17th November 2013 at 8:50 pm

  27. Zarathustra says:

    SSS, There are a lot more bank branches and at least an equal number of drug stores that I pass on my daily commute (and I mean within 2 miles of my house). I live in an upscale suburban area myself. I am new here, but since my checks are direct deposited, I had to choose a bank. I did a bit of research and picked a local one.

    17th November 2013 at 9:13 pm

  28. Jackson says:

    Where I live K-mart’s pulled out, Sears is on it’s way, and a few others may be suffering. Still the situation with banks and businesses is nothing like Administrator’s noticed in the suburbs in the west, or is that worst, of Philadelphia.

    What I have noticed here is an increase in government building. Just today there was a front page article about it in the local newspaper. A university expansion, no, make that explosion, parks, trails, schools, a recreation center, a dam project and seemingly anything else the government can think of has been approved by the let’s-spend-the-taxpayer’s-money by the little or no tax paying voters.

    I earn and save so they can spend, jog, and swim. It’s been enough to make me drink…. water, of course, since, having been taxed to penury I have nothing left for beer, wine, or the spirits of life.

    17th November 2013 at 9:18 pm

  29. Reverse Engineer says:

    Excellento article Jimbo! Up 2moro on the Diner!

    RE

    17th November 2013 at 9:33 pm

  30. sensetti says:

    I live 20 miles from the nearest town so I do most of my banking on line.

    Admin I believe your five years or less call will prove to be accurate.

    17th November 2013 at 9:36 pm

  31. AKAnon says:

    Jay the Doomsday Pepper cracks me up. Ya’ll being played by that mad slut banging party animal. Stucky-that you?

    17th November 2013 at 9:46 pm

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  36. Leobeer says:

    Curiously, Rite Aid’s stock price is up 500% over the last 12 months.

    18th November 2013 at 3:04 am

  37. Leobeer says:

    In Canada, if a business deposits cash in the bank there is a service charge for counting the paper and coins. The banks make money whenever a business deposits cash, accepts a credit card, accepts a debit card or deposits a check. There is even a small service charge for accepting an electronic payment.

    18th November 2013 at 3:12 am

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  42. Ahab says:

    ” I’d think Space Available was the hot new retailer in the country. ” Hah!!! Nice one. :)

    18th November 2013 at 5:45 am

  43. Administrator says:

    Rite Aid stock performance is relative. DOWN 90% since 1999.

    z?s=RAD&t=my&q=l&l=on&z=l&a=v&p=s&lang=en-US&region=US

    18th November 2013 at 6:28 am

  44. robert h siddell jr says:

    No mention of banks holding depositors money for free or loss of deposits in a bank failure (re Lehman Bros, MF Global, Bail-Ins, Cypress, etc). Legally, your deposits belong to the bank and you are a shareholder. When it fails, you get in line behind bond holders, preferred stock and creditors. In a bail-in, when FDIC is busted too, you might get nothing. Your money is safer in your mattress. The snowball is rolling already and banks will soon just provide financial services without depositors. PS: Tallahassee is a liberal/minority Circle-F*** city turning several four lane roads into two lane miracle mile bike friendly and city bus priority zones; and building parks (er, shooting galleries). It’s all about Agenda 21, Obama make work and dressing up slums at “government” expense. Reform of welfare and anything to help manufacturing, mining and agriculture is taboo to the communist running America.

    18th November 2013 at 6:33 am

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  46. Administrator says:

    The Schulykill Expressway was jammed this morning so I detoured to my alternate route of West Chester Pike to the 30 Blocks of Squalor.

    I was just minding my own business, listening to some tunes, and stopping at one of the 20 red lights along West Chester Pike. At one of the lights I glanced to my left and there on one corner was a boarded up Sunoco gas station and on the opposite corner was a closed NOVA Bank with a huge SPACE FOR LEASE sign on the building.

    Later on the trip I saw the beautiful gleaming Eagle Bank building that was just built a few years ago with a large SPACE AVAILABLE sign in front.

    And the beat goes on.

    18th November 2013 at 8:09 am

  47. Sensetti says:

    If the Pennsylvania would legalize Crack Cocaine, drug dealers would pay top dollar to lease those bank branches with drive up windows.

    18th November 2013 at 9:54 am

  48. Gubmint Cheese says:

    Physical banks really suck ass.
    Most open after I go to work and close by the time I leave work.
    What demographic they are trying to ensnare anyway?

    I like to keep large quantities of low denominations on hand in my safe (10’s and 5’s). Hell, on any day, they have a hard time scraping $1,000 of either one to hand over.

    I used to joke with people that the guy getting rich was the guy who makes all the “for sale” or “for lease” signs.

    I work outside a large military installation in north eastern Maryland. BRAC was supposed to be a huge boom to the local economy with all the federal folks from Monmouth relocating along with their supplier support base. It never really impacted the way they anticipated.

    To support this boondoggle, state and local gubmints invested into massive amounts of multistory office buildings, commercial real estate and industrial parks. These fancy, glass encased monoliths sit completely empty.

    In contrast to these empty monoliths spawned by greed and waste , there is a small enclave of homeless, living in tents and under tarps in a woodlot, just 600 yards away from one of them.

    18th November 2013 at 10:40 am

  49. McMike says:

    I bank face-to-face as much as possible. Why? Because the banks don’t want me to, that’s why. Also because it employs actual people. And because it drives up the bank’s cost structure. I suggest everyone does this: walk in, take your time, ask some complicated questions. Use up a half hour of the branch veep’s time learning about their CD rates.

    Also because we are wired for actual human-to-human contact, and like native languages, it dies from neglect. Our souls need it though. So I do my little part to keep it alive through use.

    To those people who are proud of banking on line, consider whether sheep are proud to be herded into stockyard pens. Making yourself dependent on the internet companies to store your data, manage your communications, and execute all the transactions of your daily life plays directly into their hands. And, I believe, will someday end very badly.

    Once they close the pen gate, they’ll light up the killing house, and there will be no where else for you to go. They’ll have you where they want you, and you’ll have been telling yourself that you’re a rebel every step of the way.

    There’s a simple rule of thumb: whatever BoA or Google tells you to do; do the opposite. Get paper statements. Go into the branch. Keep you email on your own server.

    18th November 2013 at 11:28 am

  50. Administrator says:

    McMike – rebel without a clue.

    He’s fighting the man by going to the man’s bank branch.

    He thinks he’s the lone wolf by wasting his time standing in lines to speak with a bank drone.

    He thinks banking in person will somehow save him from the government.

    Wow. I really do need to require an IQ test to comment on TBP.

    His email is secure on his own server. That’s a good one. LOL.

    18th November 2013 at 11:41 am

  51. McMike says:

    I remember you admin, congrats on having a blog where the worst troll is the admin.

    I’ll gladly take your IQ test, but only if you work on your reading comprehension first.

    18th November 2013 at 11:51 am

  52. Administrator says:

    Looks like we have a new competitor for TBP village idiot – McMike.

    Regale us with some more of your utter stupidity. It’s truly entertaining.

    18th November 2013 at 11:55 am

  53. Administrator says:

    ” … years ago … the Fed was holding a burning match. This remains true today, only it is a bomb with a short fuse. Thirteen years after the overlevered U.S. equity market collapsed, 11 years following Bernanke’s speech, five years after the overlevered housing bubble burst and four years into the necessary onset of global zero interest rate policies and long-term refinancing operations, global monetary authorities seem to have run out of new outlets for credit.”

    Paul Brodsky

    18th November 2013 at 12:54 pm

  54. Peaceout says:

    My phone is my bank, I can manage all of my financial affairs with my phone, period. No space available worries for me and no bullshit fees to pay for any transaction. Try it you’ll like it.

    18th November 2013 at 3:31 pm

  55. Richard Wax says:

    I’ll bet Peaceout still has a VHS and 8 track stereo …

    18th November 2013 at 4:09 pm

  56. Richard Wax says:

    A while back I used to take the visa applications and stuff their postage paid envelopes with all the crap they sent me along with a nice piece on cardboard. If everybody did that, they would stop sending them.

    18th November 2013 at 4:12 pm

  57. Peaceout says:

    I do they will worth big money on Ebay someday!

    18th November 2013 at 4:13 pm

  58. chicago999444 says:

    AWD, I will agree with you that the “white flight” to the burbs post 1965 was to escape from the bad elements to whom we had delivered our cities by that time, thanks to the massively funded and forcefully implemented government programs designed specifically to drive demands for houses, autos, and the consumer goods to fill those houses.

    DOT (highways) FHA and the GSEs (housing), HUD (low income housing) .. all were necessary to skew people’s choices by making what would have been utterly unaffordable for most ordinary folk, which was the brand new little tract house with the driveway just off the highway exit, and the car(s) to park in it, never mind the junk that rapidly filled the garages, available to people.

    By 1965, our cities were substantially depopulated, as a massive swath of the working and middle classes understandably chose those 3.5% down FHA loans and 0 down VA loans on the little ticky-tacky ranchettes, rather than laboriously save the 20% down for the city bungalow most would really rather have had. Federally backed home loans saved them a decade or more of living in a cramped flat overhead the grouchy landlady who hated their kids and banged on the radiator pipes everytime she heard the bed bouncing upstairs. Oh, how my mother hated that living arrangement and how overjoyed she was with the little 3 bed 1 bath rancher built on a slab in a new southern IL burb across the river from St. Louis, and bought a nice new automatic clothes washer to celebrate, her very first after years of washing diapers in the landlady’s old wringer washer

    Our taxes paid for the suburb house loans and interstate highways to depopulate our cities, and for the low-income housing projects to ruin the poor neighborhoods that remained. By 1965, the poor were almost all that were left, with the exception of a few elite pockets on gated streets, and a few stalwart middle income blue collar nabes of loyalists whose families had been in the city since 1840 or sometime thereabouts.

    Then our taxes paid for the moronic social welfare “great society” programs and the “peace keeping” foreign aid programs, then they paid to dumb down our public schools.

    They paid for middle class people to borrow beyond their means to buy overpriced houses (government backed GSE’s guaranteeing the loans) and they paid to expand the sprawl system and the warfare and welfare states. And they paid for the simulacrum of “economic growth” that is the metastasis of highways, suburban sprawl, and redundant retail, hospitals, and air and road infrastructure.

    And they will be paying for all this shit a long time after it has crumbled to rubble and we’re all trying to scratch a bare living farming all the parks, and camping out along the crumbling highways, or in derelict cars.

    18th November 2013 at 4:59 pm

  59. TeresaE says:

    Nicely articulated again Jim.

    I’ve been doing a lot of driving between the city and my dad’s country home (dad is ailing, nephew was in an accident and has smashed all the bones in his face, trying times) and I noticed that – all of a sudden – large tracts of land (farm/swamp/unimproved) are popping up everywhere for sale.

    My guess is that foreigners will be the primary buyers if the gubment doesn’t have plans.

    Meanwhile, Tim Hortons is building, the big banks are remodeling (entire new facades) while simultaneously closing branches and the number of For Sale/For Lease on buildings and houses is picking up again.

    No worries though, Michigan is getting ready to screw the youngsters, and those that have worked their ways up, and raise minimum wage again. The layoffs and downsizings and inflation must have worked out wonderfully when they raised it the last time (in 2008), I’m sure this time will be different.

    Then those overbuilt drug stores and banks will become magically profitable as the free health care, drugs and forced direct deposits on minimum wage workers will flood the economy and fix all our ills.

    At least that’s the way the idiot politicians are selling it.

    Great times in America. Bleak times dead ahead.

    Thanks again, Jim.

    19th November 2013 at 12:51 pm

  60. backwardsevolution says:

    Admin – another great article! Thank you.

    You said, “The Federal Reserve is responsible for zombifying the entire country. And it wasn’t a mistake. It was a choice made by those in power in order to maintain the status quo. The fateful day in March 2009 when the pencil pushing lightweight accountants at the FASB rescinded mark to market accounting rules gave birth to zombie nation.”

    Ilargi over at The Automatic Earth agrees, and he says:

    “Because either those who keep claiming that Bernanke and the rest of the Fed board have made nothing but honest mistakes for years are right, and I am profoundly stupid – which I don’t think I am -, or I am right and the Fed is loaded with really stupid people. And I don’t believe that either.

    There is a third option, however and of course: that the Fed has not at all been doing what they say they have, and it wasn’t a long line of mistakes, but something else altogether. [...]

    But still, you have these respected analysts who keep on hammering the same single tune: it’s all mistakes, none of it happens on purpose.”

    Then he cites Lacy Hunt and John Hussman. Charles Hugh Smith has repeatedly said that there’s no way these analysts or economists, or anyone making their money from financial services, is going to say anything critical or spell out the real truth – they’re banking too much money off the current casino system.

    None of this was a mistake. Good job, Admin.

    19th November 2013 at 2:09 pm

  61. Guest Post: The American Model Of “Growth”: Overbuilding And Poaching | peoples trust toronto says:

    […] become so dominant?Look no farther than the cheap-money policies of the Federal Reserve: Take It To The Bank (The Burning […]

    19th November 2013 at 9:39 pm

  62. mickeyman says:

    I still go into the bank to buy nickels.

    19th November 2013 at 11:08 pm

  63. ObamaTheGreat says:

    mickeyman – you still have nickels? You greedy rich pig. I am going to send my henchmen the IRS around to take our fair share of those nickels. If you can afford nickels, you obviously can pay more tax.

    19th November 2013 at 11:26 pm

  64. Guest Post: The American Model Of “Growth”: Overbuilding And Poaching | Financial Fall says:

    […] become so dominant?Look no farther than the cheap-money policies of the Federal Reserve: Take It To The Bank (The Burning […]

    20th November 2013 at 1:54 am

  65. Guest Post: The American Model Of "Growth": Overbuilding And Poaching | FXCharter says:

    […] become so dominant?Look no farther than the cheap-money policies of the Federal Reserve: Take It To The Bank (The Burning […]

    20th November 2013 at 2:09 am

  66. Katy, Houston TX Housing Bubbles No Longer A Question Of Fact says:

    […] As I published my the latest stats from the Houston area October home sales report I was looking for signs that the market is ready to turn, and I think they have arrived at that point.  As we head into next year, I think it will become apparent that the Katy and West Houston housing markets are in for at least a little consolidation. There’s a reason Houston recently made the top 10 list of the nations most overvalued housing markets.  It’s true!  In lieu of additional QE or stimulus, I don’t see how the current gains in home prices will hold.  Much of what is driving current home prices is not organic growth.  In Houston, as in the rest of the country, the reflation of the housing market is perilous adventure in flawed monetary policy.  I ‘ve added a few new pages to the site with a nice chart reflecting the real cause for our current mini housing bubbles in the Katy and West Houston real estate markets.  As Jim Quinn recently stated, you can Take It To The Bank. […]

    20th November 2013 at 10:47 am

  67. Mike says:

    Your email contact address at comcast as detailed at Market Oracle and copied directly from the site is rejected by Comcast which advises “not recognized as a comcast client”. As I wish to ask permission to reproduce your article could you please advise a contact email address.
    Many thanks
    Mike

    20th November 2013 at 5:47 pm

  68. Administrator says:

    Mike

    I canceled my comcast email address over a year ago.

    My new email address is [email protected]

    You have my permission to reproduce any of my articles at any time.

    20th November 2013 at 5:51 pm

  69. llpoh says:

    Admin the Munificent!

    20th November 2013 at 6:22 pm

  70. wchildblog | The American Model of “Growth”: Overbuilding and Poaching says:

    […] poaching become so dominant? Look no farther than the cheap-money policies of the Federal Reserve: Take It To The Bank (The Burning […]

    21st November 2013 at 1:03 pm

  71. Mike says:

    Thanks for the permission to reprint your exceptional article.

    “”Take It To The Bank” A Devastating Critique of The Fed’s Interest Rate Policy”
    http://tinyurl.com/n2z8es7 which, along with “:Fed’s Interest Rate Policy Is Utter Theft From Retirees/Savers To Prop Up Obama Admin” (both reproduced/linked at the site) are classic strictures against govt interference in natural market forces mechanism.
    MJ Sheppard

    21st November 2013 at 1:15 pm

  72. Drowning in Parasitism says:

    Another blistering, superb overview as the addicted, spoiled readers/bloggers here are accustomed to.

    Notwithstanding the implication of the title, never forget the international global banksters’, elitists’/supremacists’ like Kissinger with all his furtive, countless trips to Communist China to pave the way for “free trade” with China, and our whore politicians who gladly obliged them all WILLINGLY did this to the American people:

    You can catch it on Netflix:

    Death by China

    http://deathbychina.com/

    Note to Robert Siddell: Haven’t seen you write here before; excellent post. Global collectivism/totalitarianism is absolutely what the planned collapse of the West is all about and Agenda 21 is just one of the death-by-a-thousand-cuts stealth means of doing it.

    21st November 2013 at 7:29 pm

  73. Drowning in Parasitism says:

    Where’s poster “Stucky?”

    A day without reading resident-Stucky’s postings is like a day without moonshine.

    21st November 2013 at 7:53 pm

  74. gayle bourne says:

    I began reading this article after reading your tirade against snap above, in which you seem to think your son could support himself and a family on $800 a month. Here, you are apparently advocating destroying even more living wage jobs because of some kind of over expansion of businesses? Ten banks in a square mile or some such? Where are you imagining these people should get jobs if all these banks and pharmacies did not exist? And, more to the point, how is it your head has not exploded from the cognitive dissonance? You want poor people to get nobs, but you say that businesses are over developed…does not compute. And a living wage in 21st century America is no less than $25,000 a year, not $800 a month. Is that too hard for you to grok? Are you too good to live in your car, because that is what you are advocating at that wage level…and too bad if they do not even have a car, I guess. Your son will drive soon? Is he paying for the car, insurance, registration and taxes, and gasoline? No? Then you can hardly compare him to a real family that you say should actually be able to live on $800 a month. I dare you to try it. Pay you mortgage, transportation, food, medicine and household expenses on $800 a month and nothing else. Nothing else. Put up or shut up.

    25th November 2013 at 8:05 pm

  75. Administrator says:

    gayle bourne

    It is clear you are a clueless moron who has trouble comprehending what you read. You are surely a product of our government run educational system. Your run on paragraph of gibberish has no point. What the fuck is your point? It does not compute because of your 75 level IQ.

    I don’t need to put up or shut up. I educated myself, worked hard and have an excellent paying job. My son probably makes more than you, based upon the idiocy of your screed.

    By the way, go fuck yourself you dumbass hateful shrew.

    25th November 2013 at 8:12 pm

  76. Zarathustra says:

    I want poor people to get nobs.

    25th November 2013 at 8:31 pm

  77. TAKE IT TO THE BANK | THE BURNING PLATFORM | Global Fiat Fiasco says:

    […] theburningplatform.com/ […]

    31st December 2013 at 7:25 pm

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