Let the Banks Eat Cake

“Because the real cause of our economic slump isn't too much government or too little government. It isn't red tape, high taxes, low taxes, the growing divide between the rich and the poor, too much government debt, too little government debt, corporations, poor people, "greed," "socialism," China, Greece, the sign of the Zodiac, or the legalization of gay marriage.” “We're hocked up to the eyeballs, and then some. We're at the bottom of a lake of debt, lashed to an anchor. The root cause of the financial crisis and the great recession that followed was excessive household debt, which doubled from 2000 to 2008, peaking at nearly $14 trillion, a quadrupling in a generation. We owe more than any other nation, ever. T Mobile, my wireless carrier, doesn't charge me what's "fair" each month. They charge me according to my contract. And, BTW, their current “deals” beat my existing contract with them by a lot and they won’t let me switch without paying a hefty penalty. And no doubt if the other wireless providers started eating their lunch they’d either sell out or default on their debt as well. “We have tens of millions who cannot repay their debts. But they are all trying to. That sucks huge amounts of money out of the economy. And that means these people cannot function properly as consumers or workers. That's the reason more people aren't coming into restaurants or haven't hired you to redo the kitchen or do a host of other things. I do not say this lightly. I own financial stocks, Bank of America, Wells Fargo. If homeowners follow the prescription bank valuations may decline sharply. So be it, because what are the alternatives since Banks are unwilling to be proactive and write down mortgages and reduce interest rates across the board?  If they had many more homeowners would have had a chance at keeping their homes. Or maybe you think we should employ: “Government cutbacks, higher taxes, and a balanced budget? - in a normal economy, fine.

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Let the Banks Eat Cake

So be it, because what are the alternatives since Banks are unwilling to be proactive and write down mortgages and reduce interest rates across the board? If they had many more homeowners would have had a chance at keeping their homes.




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