Banks should have to do this....

Do you ever get tired of banks complaining that they are too regulated and are prevented from setting up fee structures that allows them to recapture the cost of doing business?

I know I am. If people were more educated about how money works they would with a loud voice tell the banks to shut up! The banks are more than willing to accept your money and deposit it to your checking/savings account or CD (if you are dumb enough to have one, I'll explain in a minute don't worry.) What angers me though is that by doing that they claim to be generous in offering a high yield interest rate on your money. What a down and outright lie! You get less that 1% interest if it is in a checking or savings account, and you may if you are lucky get up towards 2 % if it is a CD or money market account and the banks have the nerve to call that high yield.


So for every $100.00 you put into an account that gives you 0.75%, just as an example, you get $0.75 as an reward. Less than $1.00! But now think of what that bank does with that same $100.00, it will lend it out to someone in terms of an auto loan, second mortgage, credit card etc.. Take a credit card for example; If you happen to be someone with difficult credit, and who isn't these days, it is not unheard of that you get charge 21%. On that $100.00 the bank now made back $21.00 which they gave you $0.75 profetting them with $20.25. I know this is very oversimplified, but it illustrates how money works and how the banks not only knows this, but count on the fact that you don't. The banks are making obscene profits, yet they bellyache about not being able to charge customers more freely with their bank fee structure! They are robbing the American public blind because not enough people know how money truly works in the market place. Shame on them!

What to do? This is where I wish that someone would have enough balls to take on the system and not only propose, but manage to pass the following law or regulation; Require banks to offer its customers the bare minimum of what the rate of inflation is. Say if the rate of inflation was 3%, the minimum interest the banks could offer (i.e. checking accounts since they have the lowest yields...) was 3%. That way when you put money into your account knowing that at least your hard earned money doesn't lose its purchasing power. This rate would have to be adjusted as often as the rate of inflation gets adjusted to keep it current at all times. That along with doing away with fees, banks already make a ton of money by putting it back in to the market place through their various "services" so they meet their bottom line without having to lie to the public about the necessity of fees to make up for the cost of doing business.

I know this will never happen, but one can dream right? If anything I hope the public becomes more aware of how money works so they can participate in such a way that they don't always end up with the short end of the stick....