Why are we bailing out Banks that ruined themselves through unsound lending practices.?
Is it because Barney Franks and Chris Dodd told them back years ago
don't worry , Play along with our game, and when the bubble breaks
we will protect you, Is this really what took place.
- Anonymous1 decade agoFavorite Answer
A. We should not be, Small community banks who practiced sound
principles for loaning are having no problems. So let the big ones crash
Put Franks and Dodd in Jail. and lets get on with life,
- Betty BLv 71 decade ago
I blame Capitalism.
In a way, capitalism is great because it’s about making money so everybody gets richer.
You have $1,000,000 on the stock market and if you make only 10%/year, you’ll gain $100,000 every year, without working, without doing anything, without making anything. And when I say 10%, I’m being capitalitically conservative…some stocks my husband bought back in November are now worth double so what…he just made $50,000 in 3 months (there’s really no recession for the rich).
But then it’s really about making money without making anything.
It’s making money about money and when some poor people at the end of the line cannot hold it, they lose their house, but…you still made money.
Some countries, like China, they make stuff and then make money out of selling the stuff. America does not make stuff, they buy stuff from other countries who made them. At one point, somebody is going to have to pay that bill.
The government has to bail banks because banks are like the walls in a house. The house being the economy, you need walls to have a nice house or it could get drafty.
- darrin bLv 71 decade ago
Because unfortunately, we really need them.
But I do agree that many should go under.
I find it amazing how so many are blaming the homeowners for getting themselves in a bind but as you rightly pointed out, many banks resorted in unsound lending practices.
And many bankers made loans that they knew the homeowners could not afford because it meant big commissions for the lenders.
The banks were banking on the homeowners defaulting and then going in and re-possessing the homes and re-selling them to some unsuspecting buyer who wanted a piece of the American pie.
The banks hadn't counted on so many foreclosures. So they hurt themselves in the process of hurting others.
That's how Karma usually works.
I hope President Obama let many of the banks go under. Especially those who were extremely irresponsible in their lending practices.
- Anonymous1 decade ago
Because our government has been bought and paid for by them. Someone chose who you would vote for, Americans didn't run out and support Clinton, Obama, McCain, Romney and hoist these guys up to prominience, the banks, weapons manufacturers, lobbyist groups and media did, then they have you go out and chose which one you like the best out of their picks and Americans call this Democracy.
The best part is that these banks took our money, took it and then lend it back to us with interest rates that were illegal just a few years ago. Democracy, Free Market BULLSH!T!
America is dead.
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- ARBOBLv 61 decade ago
That is exactly the big question, and why the administration insists on bailing these idiots out and making all of us pay for it is way beyond me. I wish I knew what the answer was, but this just gets all of us in deeper and deeper with absolutely NO solution to bad banks.
- 1 decade ago
banks participated in sub prime lending that was not in their best interest it was the dems that imposed it on them, then when the debt could not be paid, the government bails them out, but a little tooo late, the banks in turn used and are using the bail out money to stay a float instead of using it to un freeze credit.
- 1 decade ago
Ever see "It's a Wonderful Life"?
Remember that scene where everyone is running to the bank screaming that they want their money, but the bank has to close and everyone loses their money? That's why.
- Shovel ReadyLv 51 decade ago
It wasn't the banks' idea to lend money to people who would be unable to pay it back. Congress passed laws coercing them to do so.
- Anonymous1 decade ago
They got their balls drop off. America is where Canada and Europe meets, people pisses off by the thoughts of it and exclaimed "NOOO!! we are prouder and better!!!" XDXD
the more you deny the more you get into.
Probably you havent seen anything yet, when everything in business is government controlled (chill)burrrrr
- CheyenneLv 61 decade ago
You mean the Banks that loaned money to people that were greedy and could not live within their means? Hmmmm not sure...