So, the big bailout plan failed to pass through the House today.
It makes me wonder, why the fuck is no one really being held accountable? I understand that the laws prohibiting predatory lending were repealed some time ago, so technically no one broke the law, but, really? I mean, no one is getting in trouble here. Sure, some banking bigwigs are losing 95% of their fortune, yet at the end of the day they are still 20 times richer than the average American. How is no one going to jail for this? Honestly, fining people probably isn't the greatest idea, since banks paying more isn't the smartest thing to make them do at the moment. But jail? Sure.
I talked with a friend today, and I we came to a conclusion: a $700 billion bailout plan where the government merely purchases the bad loans is stupid. Yes, it saves the private banks that fucked up, but in the end, who cares? What about the millions of people who are - and I really hate to use this term - "victims" of predatory lending? The thing is, as much as it true that these people were buying things there's no way they could afford... there's so many of them that had no idea what they were getting into. America's education system is not the best out there. Most Americans have no concept of economics, accounting, banking, etc. They were offered the deal of a lifetime, and took it.
Who is helping them?
What if the bailout plan did something like pay the banks to reduce interest rates on all their bad loans? We wouldn't need to pay as much, because the government wouldn't be outright buying all the loans, just helping the banks get through their shitty loans. It would help the people in trouble, give them money to spend (i.e. put money into the economy). It just seems like a better idea. I understand that it's basically giving houses to people that are way too expensive for their means, but i think it's the only answer. Someone has to pay, and it'll be the banks.
/my2cents
~ Nick
We never saw this coming, pride comes before a fall
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2 comments:
Great points. It is so frustrating that apparently, banks cannot lose.
They offer loans: this makes them money as the loan is paid back with interest.
If the loan is defaulted upon, the bank writes this loss off as a capital loss and can deduct it from its taxes.
If enough of the loans go sour, the bank says "well, we are out of money, we gotta close shop" and the FDIC comes in and takes over.
The entire time though, no one is held accountable. I don't understand how a democratically controlled congress can't pass their own fucking bill. Are they afraid that if it doesn't work they will be held responsible and they want someone to share the blame for them?
Maybe that is what should be taught in our school system - some fucking accountability.
le sigh.
One of the most frustrating things about this is there are still ads on TV about "NO CREDIT?! WE'LL STILL GIVE YOU BIG LOENS!!!" It's literally predatory, capitalizing on the fucking dumb ass public who has no clue what the fuck is going on. makes me RAAAAAAGGGEEEE
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