I worked in the lower castes of the banking system. Never worked at Goldman Sachs, was ever so briefly an "analyst" at Norwest, but after that it was pretty much the bottom of the barrel for me:
Credit unions and community banks.
This meant taking on the clients that the upper, mid, and regional banks didn't want. Our clientele was by far the dumbest people in the population, and because of their idiocy, they were also the worst in terms of personal finances. And this is not an opinion. The last bank I worked for actually liked problem clients because (get this):
they always had to pay late fees and were thusly sometimes our most profitable clients.
Forget quality clients that pay you back on time. Forget reliable depositors and checking clients who always made sure they never overdrafted.
No, our business plan was to keep the degenerates of society because we could nail them with fees.
Thus, why I'm not surprised that a full 25% of Obamacare applications have errors on them.
Like credit unions and community banks, people who are applying for Obamacare are likely the dregs of society. They're unable to support themselves financially, and so you shouldn't expect them to be able to fill out an application correctly. And frankly, I'm surprised it's as low as 25%. But what I really love about this is not that Obamacare is failing because it's technology is being implemented by incompetent liberals, and not that it's failing because of its own crushing bureaucratic weight, but because the intended users are just too damn stupid to use it effectively.
This is a real problem the left is going to have to face. If it gets so big, and it gets so much of what it wants, it not only has to rely on lesser talented people to implement and manage these programs, but rely on their idiotic voter base to use it AND appreciate it. But since they've dumbed them down so much with K-College education, it's too complicated for their voter base to use, thus appreciate it.
it is the blind leading the blind, and I am enjoying watching it as I enjoy the decline.
After the divorce my ex would run up hundreds of dollars in fees every month at our credit union. I apologetically mentioned this once and the CU officer just laughed. "We wouldn't make it without clients like her," she said.
ReplyDeleteI love my credit union. They hardly make a dime off me (1.9% car loans, no-fee checking that even pays a little bit of interest, and if I'm in a tight spot a $500 cash advance costs all of twelve bucks in interest) but they treat me like a king every time I go in. I suppose I should thank people like my ex for that...
Oh yeah,
ReplyDeleteBefore you pick on me because of my spelling.
I'm leaving for greener pastures.
Here, I've corrected my spelling mistakes.
The Idiocracy is in progress and on schedule -- it's evident in the cries for Obama to ignore the law and run for another term.
ReplyDeleteTo be fair to the Obamacare applicants, the system is so thoroughly screwed from login to the non-existent payment system that errors are hardly likely their fault.
ReplyDeleteYou may be enjoying the decline, but I am laughing my head off over Obamacare. Oh the poor fools! Har! They thought to rob the piggy bank and now they are being robbed. Both of their money and of their identities. Obamacare is a hoot!
ReplyDeleteI do feel sorry for those who voted Republican. Most of them are fools but not as big fools as those who voted for the Democrats.
Nessim Taleb said, wisely, that when immersed in fools one must learn how to play them for suckers.
Not for nothin', but I moved all my banking to CUs after TARP, and have been laughing at all the bonuses and fees in the TBTFosphere ever since. F--k the big welfare dowager banks.
ReplyDeleteI got a credit union account but hardly ever use it I have it more so if I'm ever in the position where I'd need some kind of loan, I could get one at a better, lower interest rate than what the big banks can provide and I also have it as backup in case one of the banks I do business with goes bankrupt somehow and maybe something bad happens to the FDIC.
ReplyDeleteYou'll appreciate this one:
ReplyDeletehttps://www.youtube.com/watch?v=3IQC7P9hT_A
FYI - Tony Abbott is now Prime Minister after having beaten Julia Gillard (a woman).
This meant taking on the clients that the upper, mid, and regional banks didn't want. Our clientele was by far the dumbest people in the population, and because of their idiocy, they were also the worst in terms of personal finances.
ReplyDeleteThis explains a disconnect I've had concerning somethings you post about the loans you've seen. You talk about idiots borrowing to run coffee shops, sports bars, and horse farms that failed and would always fail and the bank was dumb to lend. You made it seem like it was always dumb to lend on such things.
However, I have frequented successful sports bars and coffee shops* that did well. I don't know horses, but they aren't dying off so I figure working horse farms also exist.
But I get it, you're not talking about how it's dumb to lend for these things but to lend for them to the kind of customers those banks can get.
*One here specializes in providing a place for miniature, board, and roleplaying gamers to come and play games. Sure, they sell a few gaming products and most people call it a game store (another hobby business that also fails) but their bread and butter is coffee and sandwiches people buy while there gaming for 4,5,8 hours.
Yet another reason why single payer, medicare for all makes sense.
ReplyDelete