The biggest Bank Fraud and your Home Loan
The Biggest Fraud in Very Simple Terms. There are still a lot of people “not getting it”. So, I am going to use a very simple example that most people are familiar with. Please bear in mind, that this is just one example and the same basis principles apply in many other situations.
You are a young man with a growing family. You have been living in an apartment. You have a good steady job and so does your wife. You decide to “apply for a home loan” —- right? Typical story. You assume, naturally, that when you go to the bank, they are going to loan you money to buy a home, just as banks and credit unions used to do it prior to 1934. But in 1934, something changed and nobody told you.
Since 1934, instead of loaning you money to buy a home which you then have to pay back, something entirely different has been going on. Since 1934, the banks have had no money to lend. They can only lend credit. So what happens?