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A loan is an investment. Like almost all formal investments there are rules, laws, and contracts involved. When an investment goes bad both parties tend to su
by yequalsx 11y ago
A loan is an investment. Like almost all formal investments there are rules, laws, and contracts involved. When an investment goes bad both parties tend to suffer.
When I defaulted on my mortgage the bank got the house and I bought another one for a much cheaper price. The bank lost money. It happens with investments. That's part of the risk. I still secure credit and have a 750 credit rating even with a default on my record. My credit card company still trusts me. I've suffered no long term consequences other than that I can't get another mortgage for 5 years.
The point of me writing the above is try to show that defaulting on loans is not a black/white issue. It's not either or. There are shades of gray sometimes. And most certainly, when a bad loan is made both parties should suffer consequences.
- woodman 11y agoIt is strange that you recognize the bank's right to remedial action in taking your house, but don't appear to apply the same logic to the Greek situation. You even recognize the fact that the bank suffered due to their mistake of giving you money, but you don't see the rest of the EU eating the shit sandwich that is the Greek financial crisis? Your personal story, while interesting, is certainly outside the norm. We don't have debtors' prison, but this sort of thing can have multigenerational consequences.
- yequalsx 11y agoNowhere have I indicated that Greece shouldn't suffer for their profligate borrowing. I mentioned that the banks should suffer as well. Nothing more, nothing less. Implicit in my posts is the belief that the banks haven't suffered proportionate to their recklessness.