Avinash_Tyagi said:
TheRealMafoo said:
Avinash_Tyagi said:
@Mafoo, that's a ridiculous comment to make, because first off you still suffer, if your loan defaults, even if you're the bank that made the loan because of the government paying you to do so, you experience losses, so the idea that you make stupid loans is still your fault and your problem, same with the consumer who takes the loans. Everyone knew the market was over leveraged and going to experience a downturn, and the lenders still gave them out.
Secondly as I pointed out, there were far more than just the government subsidized loans that played a role in this, the shadow banking system, which acted as a way of lending between businesses collapsed when the market went under, they had little regulatio nor protections, so that was billions lost there, the government wasn't at fault for that.
Or predatory lending where Banks would get people to take out loans with loan terms that the borrowers couldn't handle, the government didn't do that.
As I pointed out, your argument also falls flat on the basis of your own beliefs, on personal responsibility, doing something stupid and then whining that the government made it too easy for you to do that stupid thing only shows that you were an idiot, it was their responsibility not to give out bad loans, and the consumers not to take them, so blaming the government is disingenuous, the government didn't forec them to make bad decisions. |
Sigh..
I am not saying it's not the people who took the loans outs fault. I am saying it's everyones fault. Your saying in no way is it governments fault, and that's absolute bullshit.
If I had to lay the least blame on someone, it would be the banks. They were getting paid either way, and it is not there responsibility (nor should it be), to be concerned with your credit. All they should worry about, is if leaning people money is a good investment. The government made sure the answer to that question was yes when for many people it should have been no.
That's the governments fault. Plain and simple.
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I never said the government wasn't at fault, however there is a big difference between the blame the government bears and what the private lenders bear, you do something stupid and the government was incentivizing it, you still did something stupid.
But it wasn't a good investment, as the need for TARP proved, without TARP most of those banks would be gone, so they didn't do their job, to protect their bottom line, yes it is the banks concern to worry about your ability, because they don't get repayed if you can't, actually the banks and other lending institutions deserve a good chunk of the blame, because of all those involved, they had the best information, and yet continued to make bad loans, that's not the government's fault.
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