Political Quotes

“Mr. President, when you went to a local bank in Mansfield, OH, to buy a house 30, 40, or 50 years ago, you knew the lender, and the lender knew you. You saw him or her at the grocery store. Maybe they went to your church or synagogue. Your kids probably went to the same school. You knew that your deposits at the bank helped fund your neighbor's house or the hardware store down the street. A lot of banks and credit unions don't work this way. The 2008 crisis taught us that finance has changed. Now a mortgage in Zanesville, OH, is diced and sliced and sold to an investor in Zurich, Switzerland. Banks in Frankfurt place bets on loans in Fostoria. When the system went bust a decade ago and predatory loans began to fail, Ohio taxpayers picked up the tab, including for foreign banks headquartered an ocean away. The Federal Reserve opened up a spigot of cheap money to keep the global economy from tanking. Banks in Spain, France, Japan, Canada, and Korea all came to the United States for help to weather the financial storm. Think about this. An analysis of the Fed's lending from February 2008 to 2009 showed that the vast majority of loans went to foreign banks. After the crisis, records released to the public showed that foreign banks took more than 70 percent of the Fed's loans during the crisis and 65 percent of loans from other emergency programs.…”