define "right mind" if you mean wether or not theyre intelligent, then you were calling them idiots, if you mean "right-wing mindset" then fair play but that means youre spoke out of context.
Obama is imposing higher taxes on the financial sector? yes? thats a good thing, makes the people repsonsible for the crisis pay the price and a fair share given that they earn 75x the average wage or something daft like that
Obama wants to make the banks lend again? again this is a good thing, more lending will help mortgage holders and small bussiness get through the hard times
Obama wants more regulation? yet again this is a good thing, means that the new lending is done sensibly and does not involve large risks, that way the financial sector is secure
By right mind, I mean a good way of thinking, not right or left.
And where did Obama raise taxes on the financial sector?
As far as making banks lend...
Here is the problem.
Banks want to lend. They just only want to lend to people who will pay the loans back. Right now, it's hard to know who that is. Bankers are smart. They don't throw good money after bad. What Obama is trying to do, is say “give more small businesses loans even if they are high risk, and if it fails, we will pick up the bill”.
The reason banks won't loan these small businesses money, is because they will fail. Banks have people who look over the business plans, and understand a good one from a bad one.
Why is it a good idea to fund a bad one?
This is what happened in the housing industry. Banks did not give loans to people who were likely to not pay them back. Government made those loans profitable to Banks, so Banks gave them out.
The same thing will happen with small businesses.
Explain to me why this is a good idea?
if banks wanted to lend responsibly, how did we get into this mess? (may be different in the US, im in the UK)
at no point did i say they should lend to bad bussiness
i think housing should be dealt with by the government buying up empty homes and renting them to people
if the banks dont lend at all then no-one can get a home and no bussiness can stay afloat, so you have mass unemployment and homlessness
bankers and not all geniuses, if they were, we wouldnt be in this mess
Define "responsibly".
banks are very responsible with respect to there own interest. As far as the consumer being responsible, they just care that the predict the right number of people don't default on there loans.
If they guess 20% defaults upfront, and set an interest rate accordingly so they make a profit, it is responsible for the bank (no so much for the consumer).
Before the home loans were incentives by the government, only about 60% of working families could qualify to buy a home. When the crashed happened, we were up to 75% (thanks to government incentivizing).
Today, guess how many families can get loans? around 60%. The number that it should have been all along. People can get home loans, and banks are lending. It seems like so many people now can't get loans, because those people who never have been given loans in the first place can't get loans now.
As for why this happened? It happened for two reasons (both governments fault).
One, is Fanny and Freddy were being audited regularly, but when the auditors came before congress each time and told them Fanny and Freddy were in trouble, they are raked over the coals and told they just don't want poor people in homes. Mostly because Fanny and Freddy were paying a fortune to congress through lobbiest.
Second, The banks were told these loans were insured and guaranteed through the government (not really true). So banks thought the risk on this money was zero. In the end, the banks were right, as the government is giving them money for the loans. Come Monday, the government is going to buy up billions in troubled assets.
I can't find it, but there is a clip from Bill Clinton talking about the bill he signed to start this ball rolling. He wanted to get the housing market from 60% to 66%. Bill even states that it was risky, but they had enough money at the time to cover it. If President Clinton had to do it all over again, he never would have signed that bill.
And here is a video of the issue with Fanny and Freddy in Congress. Try and overlook the partisanship of the video. The important thing is people knew this for a long time, and did nothing.
ok, i take your points about the crisis in the US, i think banks first duty should be to the consumer (public) but obviously they should also try to make a profit, thats why i suggested a better more progressive tax system and that the government buy up unused homes and rent them out to people at an affordable price, covers that 15% your on about, maybe even more, sure they dont own the house, but they have somewhere to live at least, as for small bussiness, we should try to make sure theyre profitable somehow as they employ so many people
