CNN recently ran a report on home repossessions in the US that detailed how many former home owners were reduced to living in trailer parks after they hadn’t been able to keep up with payments on their house.
I felt sorry for those people, somehow caught up in the shenanigans of the mortgage lenders and their folly in lending too much money to people who didn’t even include a salary statement in their application.
Instead of living the American dream, those poor individuals found themselves victims of the cruel side of capitalism and living the nightmare. What would you do?
Unfortunately, they aren’t the only victims. Think of the thousands of employees without work now, who were fired after the financial organization went under or was taken over because of the weakness of its lending portfolio.
I wonder who isn’t hurting. I’m also curious to know why the bankers, and other ‘guardians of the system’ failed in their duty to manage the risk to the system. Bubbles will occur and pop, as they always do.
But is there wrongdoing somewhere? Let’s ask who benefited the most from these dodgy arrangements, who made the most money? Did the guardians have their fingers in the honeypot, too? Looks like they did.
What do you think?