September 24, 2008
Posted by scott at September 24, 2008 02:43 PM
What he said:
But we're in this mess, ultimately, because our political elites thought it was good social policy to encourage banks to give mortgages to uncreditworthy people, resulting in what Sailer months ago called the "Diversity Recession" (if this doesn't work, make that the Diversity Depression).
Therefore, I propose any bailout bill start with these words: "It is the sense of Congress that credit is not a civil right."
Somehow I don't think it'll work out that way.
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Any bailout should begin with everybody from the CEO slot down 3 or 4 levels having to repay all thier bonuses up to a base salary of ~500K per year (For the past 3-4 years)
At least thats my opinon.
I agree with both you! That is scary!
Did you actually read the article? If the companies were indeed forced to extend credit to uncreditworthy customers, how in the bloody hell is that the CEO's fault?
Your smoking crack if you think anybody FORCED them to give out credit to uncreditworthy customers.
They did it because they thought they could make money off of it (No more and no less than that) and they did make money off of it in the SHORT term (Look at the bonus's and such that they were making for the past 5-7 years)you think they would have continued to give out these loans if they forsaw themselves LOSING money??
Short term is now over and the piper is coming to get paid. They are even scrambling around trying to foist off debts OTHER than mortgages onto the tax payer (Credit Card Debt would be my guess)
Speaking of ignorant crack addicts, go do some research. Even the most marginal amount would help. Take this article - the major point is that Congress changed the law such that companies were forced to accept sub-par customers. The lending standards weren't just relaxed and companies decided to take them, the law actually forced it on them.
But since that goes against your "CEOs are evil because they work hard and make more money than me" philosophy, you simply won't accept this. On top of that, the simple fact that this change in the law was pushed through via the Democrats will completely escape you.
Point of order: feel good legislation that attempts to level the economic playing field will always cause financial problems.
The only way to ever level the economic playing field is to force everyone to the very lowest point possible. Only when we are all forced to never have anything and never have a say in what anyone else does, will anything truly be fair.
Jeff - more fuel to the fire.
For the best analysis I've read of what actually happened:
For the best analysis I've read on what actually happened: