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You could restructure the loans make the interest rate lower make the payment period longer prohibit the banks charging extortionate penalties and fees make the
by CPLX 5y ago
You could restructure the loans make the interest rate lower make the payment period longer prohibit the banks charging extortionate penalties and fees make the banks write down some of the principal or accumulated interest in arrears and lots of other stuff. It’s ridiculous to claim that there were no options here.
And also it’s telling that you don’t even consider the idea that the homeowners could have gotten similar treatment, ie a favorable loan that enabled them to eventually pay the principal back.
Also you’d have to explain how bailing out banks that made poor quality loans and are on the risk of insolvency isn’t “rewarding bad quality loans”.
- ImprobableTruth 5y agoA lot of loans were restructured (both due to the government and because banks themselves don't want people defaulting on loans either), but for a lot of the really bad loans the slight help from restructuring wouldn't have been enough. That's also why giving homeowners a loan wouldn't have helped, which is essentially just restructuring. >Also you’d have to explain how bailing out banks that made poor quality loans and are on the risk of insolvency isn’t “rewarding bad quality loans”. It is, to an extent, but a loan is much less of a reward than someone paying off your debt. That's also why new regulations were introduced so that future behavior likes this from banks wasn't incentivized.