Record Profits For Lenders...Thanks Americans!
Well, it looks like the new bankruptcy legisplation is really paying off....For The Banks! Wells Fargo posted record 1st quarter earnings of over $2 billion. Likewise, U.S. Bankcorp saw record profits in the first quarter of 2006. Both banks cite the lowered cost of credit as a key component of the record levels of such earnings. Now we can see why the lobby for the financial industry were so keen to get the revised bankruptcy legislation through congress last year. With record profits all around, they're sure to get their contracts extended, and their principles will no doubt get hefty bonuses.
If there was any doubt about who was really benefiting from the American public's unquenchable thirst for credit, that doubt should all but be erased. It's a shame that our economy is fueled by this drive to extend our credit limits and plunge ouselves deeper into debt at the cost of our futures, both as nation and as individuals. As we bolster the bottom lines of the major financial institutions at the cost of our own, we can only hope that the engine of economy keeps chugging away, for if it falters, we'll do the same under the crushing debt loads we've subjected ourselves to over the past decadce.
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