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It's surprisingly short sighted of businesses (banks) to not have pushed for consumer bailouts with say... vouchers for paying down mortgages or other bad debts
by themartorana 11y ago
It's surprisingly short sighted of businesses (banks) to not have pushed for consumer bailouts with say... vouchers for paying down mortgages or other bad debts. The banks collect, and people are left with a lighter load, and are more likely to re-spend.
Do banks assume that bailout + people making payments on underwater mortgages is, in the end, more profitable than bailout + lower debt loads and increased spending? An awful lot of people just walked away from their homes and mortgages.
- SturgeonsLaw 11y ago...and the banks ended up with those houses. Which were then packaged up and sold as rental back securities[1]. Rent-seeking in the most literal sense. 1. http://www.bloomberg.com/news/articles/2013-11-06/blackstone-lures-investors-to-home-rental-bonds-credit-markets http://www.bloomberg.com/news/articles/2013-11-06/blackstone...
- whoisthemachine 11y agoIt's an interesting theory that this was a conspiracy by the banks. Either way, a lassez faire market naturally forces this type of evolution without proper controls by a governing body. It makes complete sense that profits can be maximized if "consumers" (what the rest of us call people /s) have to continuously pay to use things that they depend on.
- sitkack 11y agoAnd the banks already get a handout with the mortgage tax deduction. We should have said, listen you fucks, collectively, across the board, you are writing off a massive amount of debt owed. They get money at 0 to negative rates and screw over the public at the same time.