Wednesday, April 29, 2015

Hey! Verdmont! Verdmont! You still there, Verdmont? Hey, Verdmont!


CBC News - hey Verdmont, this is how Canadian banks make all their money. They don't make all their money in the oil patch, Verdmont. They don't make all their money through any sort of productive endeavour whatsoever. They make all their money through parasitic rent-seeking:

For many small business owners, the thousands of dollars they are paying in bank fees are biting into the bottom line.

"We seem to turn around every day and there's something else that we were charged for," says Tim Gardner, co-owner of a Massage Addict franchise, a provider of registered massage therapy, in Brampton, Ont.

Since opening less than a year ago, in July 2014, Gardner says he has paid almost $7,000 in fees.

Most of those fees were connected to a small business loan, which was provided by Scotiabank under the federal government's Canadian Small Business Financing (CBSF) program.

Gardner, who worked in banking himself before opening his business, says Scotiabank charged him a $2,150 application fee.

"Which I don't get," he says. "Because after 23 years of taking applications myself, it doesn't take a lot to adjudicate an application."

Gardner was also charged a monthly account fee of $25 for the 10-year length of the loan, which amounts to $3,000.

Scotiabank also charged him $971 for a letter of credit, stating he had at least $50,000 of his own funds accessible to his landlord in the event of a default, he says.

The landlord required the letter be good for two years. But Gardner says Scotiabank would only make the letter good for one.

"Earlier this month, I was looking at our bank account and noticed they had taken out another $971 for the renewal of that letter of credit," says Gardner.

"So it's like, 'Whoa, are you kidding me?' I don't get it. It's literally a piece of paper that's addressed to the landlord saying these funds are available in the event we default."

How could anyone today think that a financier is beholden to the whims of the market? They get your money when you come in the door as a new customer, they collect rent on your money for every minute of the day it remains in their possession, and they get their money when you're wheeled out in a coffin. Any possible risk is always hedged out.

Basically, as long as there is capital in Canada, the banks will continue extracting their pound of flesh. Every day. In an increasing percentage from year to year.

That's what banking is.

And this is what happens when you have the wool pulled over your eyes by the pseudo-economic propaganda of the neocon right wing:


your short call failed.


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