Why do banks, lenders, insurance companies, auto makers get gov. handouts when they make bad financial ?
July 17, 2010 - 3:06 pm
decisions – but when a homeowner does the same thing Bernake says, "screw em"?
How short sighted you who say "It’s only one when a homeowner loses his home"
Let me educate you: this is a cascade effect. When homeowners lose their homes, it devalues the rest of your homes and more people end up losing their homes. That is where it needs to be stopped – at the homeowner level.
Considering that they pay virtually nothing in taxes and fight tooth & nail to prevent any legislation to make them pay taxes, I too am mystified by this.
July 17th, 2010 at 8:49 pm
Dont know the answer but KUDOS for hitting the nail on the head!
I think they do that b/c businesses (banks, lenders, etc…..) ARE the economy.
trouble is the ppl are who fuels the economy
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July 17th, 2010 at 8:54 pm
Im most cases of bad financial decisions by individuals, they end up on some form of welfare or don’t pay their bills and pass the buck to the rest of us paying bills.
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July 17th, 2010 at 9:12 pm
Considering that they pay virtually nothing in taxes and fight tooth & nail to prevent any legislation to make them pay taxes, I too am mystified by this.
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July 17th, 2010 at 9:19 pm
When a homeowner goes bankrupt, we have 1 bankrupt American, and Bernanke can ignore him or her with ease. When a big business goes bankrupt, we have millions of bankrupt Americans, and some of those have Bernanke’s ear. After all, success in America isn’t measured by what you know, but by who you know.
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July 17th, 2010 at 9:59 pm
When you make a bad decision, you lose your home.
When GM goes bankrupt, a million people lose their jobs and perhaps a half million people lose their pensions, the stock market takes an incredible hit.
You really don’t see the difference ?
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July 17th, 2010 at 10:42 pm
Because they’re wealthy fatcats, with influence.
The government wants to keep the incompetent fatcats in their mansions, with their huge salaries and bonuses, in spite of the fact that they’ve wrecked their own companies.
The average American struggling with rising costs of everything and confiscatory taxes doesn’t matter to the government, except as a bottomless source of money for them to give away to cronies, foreign governments, fatcat failed executives and to waste in any way imagineable.
The taxpayers don’t matter to the government, except that they finance the great government give-away.
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July 17th, 2010 at 11:29 pm
You’re right about the cascade effect–it ends up affecting all of us.
I submit that quite a few politicians’ campaigns may have been funded, directly or indirectly, by the fruits of those derivatives and default swaps and bundled mortgage backed securities (that were apparently only secure as long as the market kept climbing).
Politicians also love to get high-paying banking jobs on top of their government pensions when they retire from office, and if there are no high-paying banking jobs there anymore, what are they going to do?
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You just got me thinking about something–the whole trickle-down notion failed utterly when it was wealth that was supposed to trickle down from the top to the masses.
Now that it’s all debt and risk at the top of the financial food chain, that trickles down quite efficiently to the taxpayer, doesn’t it?