By Paul Ranger
To paraphrase the Feds, it is in the best interest of the country to keep the banks solvent. Therefore, they gave them money to stay open. It was said that these banks were irresponsible in their lending and in addition took advantage of borrowers’ naivety. Nonetheless they were given a reprieve and told to do better next time.
Will this American Government bail out the millions of Americans who are now suffering under mountains of debt including student loans?
Yes, some borrowers were irresponsible and some were not. Some experienced circumstances beyond their control, such as, illnesses, the untimely death of a bread winner, the extended deployment of a soldier spouse abroad. Keeping things in perspective, the banks were irresponsible also weren’t they?
With the help of the Current administration and congress, financial institutions were handed a present in the form of laws making it more difficult for borrowers to file bankruptcy in 2005. Ted Kennedy was one of few senators who spoke up for the American people against the greedy Banks (No, I am not a Democrat. Just Practical). Keep in mind that these institutions are allowed to write off bad debt after a while, but, it’s more profitable for them to keep you in a debt you may never pay off, because of the tremendous mounting interest and fees they have been able to collect from You and I. It has made them very rich indeed. It would be unbalanced sympathy to cry tears for these banks and their high maintenance executives. Even though they are in “trouble” now They have already taken their riches.
What has gotten me all stirred up over this matter? I just read the story below from The New York Times Website
“Given a Shovel, Americans Dig Deeper Into Debt
The collection agencies call at least 20 times a day. For a little quiet, Diane McLeod stashes her phone in the dishwasher.
But right up until she hit the wall financially, Ms. McLeod was a dream customer for lenders. She juggled not one but two mortgages, both with interest rates that rose over time, and a car loan and high-cost credit card debt. Separated and living with her 20-year-old son, she worked two jobs so she could afford her small, two-bedroom ranch house in suburban Philadelphia, the Kia she drove to work, and the handbags and knickknacks she liked.
Then last year, back-to-back medical emergencies helped push her over the edge…” Read the full story at: nytimes.com