Forum Post: Mortgages
Posted 11 years ago on May 9, 2012, 7:53 p.m. EST by chachieo
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This content is user submitted and not an official statement
The banks were nice enough to give people loans to buy homes. Why is it the banks fault when the people can not or will not pay them?
The banks caused the mortgage meltdown with ponzi-scheme derivatives then asked the taxpayers for a bailout, which the taxpayers provided.
The smart thing would have been to nationalize all banks that asked for a government bailout, which includes most major banks, the ones least willing to make loan modifications. If the banks had been nationalized, struggling home owners could ask the government to which they paid bailout money for some quid pro quo.
The homeowners were nice enough to give the banks their business. Why is it the homeowners' faults when the banks can not or will not provide a loan modification?
A promise is a promise....If they promise to pay and do not the promise is broken
Implied within the great vaults of large financial institutions is the promise of trust and safety. Both were found to be bankrupt after the financial meltdown.
If their broken promise of trust and safety was restored by their customers, shouldn't their customers promise also be restored?
Who said anything about safety? The banks lend money with the promise from the borrower that they will pay it back. What am i missing here? If you lent me $100,000 and i did not pay you back how would you handle that?
The reason the banks are still in business to receive their mortgage paymentsis because they were saved from certain financial drowning by the very people who are now themselves underwater. Yet these same banks intend not to save those who saved them, but push them deeper until they drown.
Now tell me, wouldn't you feel obligated to a person that saved your life?
People have dreams of owning a home, some of them this is their only way to a piece of the American Dream. They go to their mortgage broker and bank with these dreams and secure a mortgage. They then go about on their merry way and start building their security. The bank sees a steady stream of capital from these mortgages, sees the collateral they now have and creates products to trade and speculate on. Go capitalism. This is where it goes wrong. They then create derivatives and as with all risky deals they need more product, creating a less desirable applicant not ready to step up. My problem is not with the bank when they provided me with a mortgage, it's what they did with it while i was doing my part.
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