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View Diary: ECSTASY:  Put a dent in neo-feudalism! (45 comments)

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  •  It's definitely time to move to a CU (8+ / 0-)

    We went with a local bank for our mortgage... then it was bought by Meryl Lynch... and then BofA.

    But something awesome came of the TARP mess... BofA had to get liquid assets to pay back the TARP money... so the local bank, which had a lot of capital, bought itself back from BofA... and is now local again!  Yay.

    They are unfortunately now acting like a "private bank", though.  Which means really high minimum balances and account fees ... even for people like us who are giving them tens of thousands per year in mortgage interest.

    I was not really happy with the lack-luster response I got when I pointed out that they may want to consider waiving minimum fees for mortgage holders.

    Anyway... it's time to move to a CU, for sure.

    On a side not about choosing what businesses to support:  Check out B-corporations.  It's a whole new way to run corporations, where many of the externalities are actually accounted for in the business plan(as they should be!)

    I've posted that link here at DKos a few times, and for some reason, it doesn't seem to garner much interest, which surprises me.

    And finally... thanks for the diary and series!

    "The more the Democrats pursue the center... the further to the right the "center" moves." -fellow kossack vacantlook

    by Hopeful Skeptic on Thu May 06, 2010 at 08:01:45 PM PDT

    •  I would like to see a diary.... (5+ / 0-)

      ...about B-corporations.  Would you like to do something in this series?

      Freedom isn't "on the march." Freedom dances.

      by WarrenS on Thu May 06, 2010 at 08:10:21 PM PDT

      [ Parent ]

    •  isn't it interesting how they can.... (5+ / 0-)

      ...just change their conditions on mortgage holders, and the only resource is to get refinanced via another institution.  

      One thing to look around at when you're looking for a CU, is if they can refinance your mortgage, and if they can keep it in-house.  CUs also have very low foreclosure levels because they are lending their own money and lending in the community, so that's a point for ethical business also.

      Re. B-corps, I'll reply to that point under Warren's reply to you.

      •  yeah, one of the most frustrating parts (6+ / 0-)

        of the whole thing is that we get a 0.6% (0.6%!!!) interest rate deduction for having our mortgage payments come out of an account with their bank.  So they kinda have us over a barrel.  We just have to suck it up for now and let them keep the minimum balance.

        And it doesn't help that we bought in 2006, and almost all of our down payment and equity gains are now gone... so refinancing would require coming up with more of a down payment to get the mortgage below 85% of the appraised value...

        "The more the Democrats pursue the center... the further to the right the "center" moves." -fellow kossack vacantlook

        by Hopeful Skeptic on Thu May 06, 2010 at 08:57:16 PM PDT

        [ Parent ]

        •  eeyow. (6+ / 0-)

          Debt peonage.  

          But the underlying bug in the system there, is the idea that real estate should be a profit-making investment.  The first-order effect of that is to make it impossible for kids to grow up and live in their own neighborhood.  The second-order effect is to trap people in debt on the downside of bubbles.  

          People didn't count on their house as their major investment in life, when there were strong unions and universal pension plans.  There's another piece of the puzzle that needs to be fixed.  Collective bargaining, secure jobs, secure pensions.  

          This is also an ingredient in neo-feudalism.  Use debt to keep people trapped in their houses, and use employment-based health insurance to keep them trapped in their jobs.   The serfs are thereby chained, while the lords are free to skate.  

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