There it was – "The banks are bad, ripping off people. Making them take mortgages they couldn't repay. Making them sign papers they did not understand"
I personally don't think that anyone in Congress is going to respond to this, so here goes.
It seems to me that if the Government mandates that banks "lower their lending standards", it means that you don't any longer (if you are a bank) have the right to make sure people have enough income or good enough credit to get a loan. It was as though the Government in it's zeal to give every American a "piece of the pie" was out to make sure it happened.[more] They wanted banks and lenders to be like car dealers. "What's it going to take to get you to drive it home today?"
At a car dealership, when you answered that, they came back with a counter-offer, and eventually, you are whittled down and sign the papers and drive out with your monthly payments that go on and on and on. Granted, not all car dealers are bad, but they had a multitude of credit options. The best deals were for people who always paid their bills on time, had worked at the same place for several years, etc.
Then came the "American Dream", and everyone wanted a piece. In stepped the government with plans to make that affordable, and "you will find ways to make that happen." (If I am wrong Congress, then send me the proof that you (The Government) did not mandate banks lower their lending standards.)
Now, they are back saying that they are going to fix that mess and help out all those people who couldn't afford their homes and refinance their mortgages. My question is, "if they can't afford it now, what good is refinancing – it still has to be repaid?" A local bank (which is not in financial trouble) recently refused to take money from the Government Bailout Fund, because the string attached to their taking the money was that they would have to "lower their lending standards." My eyes almost fell out when I saw that in the local newspaper.
Enough venting! Just thought that you might want to go check out how we got where we are and what they seem to want us to do. Even if you disagree with me, I challenge you to check out the facts for yourself. What I have said does not mean that I am in favor of giant bonuses for Execs, but look at the "perks" that go with your job. To some people, those are giant bonuses too.
By the way Congress – forget flying on those corporate jets. If the executives of those companies are ripping off the American public by having them, then how the heck do you, Congress, get away with using them? Why can't you fly coach like the rest of us?
