Quote:
Originally Posted by Paul Markham
I don't think it's okay. I believe under the legislation it was impossible for them to refuse a mortgage, I may be wrong there.
Blaming Bankers for doing what Bankers do is pointless. The real blame lies with politicians who all them to do what they did and about to repeat it.
As Squealer says we are now reliant on boom and bust economies. Banks inflate and we all earn a little, then the bubble burst and we all lose a lot. Go see what your GDP would be without the Banking sector.
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The banks can absolutely refuse to give mortgages.
While I agree that politicians have to shoulder a lot of the blame, there is something to be said for being a scumbag and that is exactly what the bankers behaved like here. Nobody forced them to give mortgages to anyone and everyone they could find only to immediately sell them off knowing that the people who bought the houses have no way of actually paying for it.
There were bankers that knew they were buying toxic mortgages, but they did it anyway then used them to create investment funds that they sold to a lot of people by flat out lying to those people about what was in the fund. When it crashed and burned and those investors lost everything, the fund managers gave themselves a big bonus, folded the fund, and asked to be bailed out by the government.
Sorry, but that isn't right and we shouldn't just shurg that kind of behavior off.