The last couple of days have seemed like an episode of The Twilight Zone. The United States' economy is on the brink of collapse and the presidential election has become a carnival rather than the serious contest that it actually is.
Washington Mutual, one of the largest banks in my home state, Florida was seized by the government and portions were purchased by J.P. Morgan Chase. All of this because of a mortgage crisis?
Somewhere, some folks weren't doing their job in order for all of this to happen. Our lending institutions should have checks and balances --- controls --- in place to prevent this kind of stuff from happening. Finger pointing at Wall Street and the banks doesn't quite get it. There are a lot of people responsible for this. The situation we find ourselves in is what happens when oversight and rules are not followed. Rules, regulations and benchmarks are a good thing.
I know of several people who jumped at the opportunity to purchase a home. These folks thought they could afford the home and while there was an attempt to have them slow down and think about what they should consider in making the purchase, their realtor and the bank encouraged them to buy.
Buying a house you really can't afford is like buying a car you really can't afford. Sales people know the costs involved beyond the purchase price. So do the lenders. If a borrower actually does their homework, they will know also.
But that didn't happen and far too many people in the U.S. bought homes they really couldn't afford. They bought cars they couldn't afford. They took out loans they couldn't repay.
While all of these things happened, the heads of investment banks and fragile corporations continue to collect their obscene pay. The lending institutions that are in trouble and seeking welfare from the government are not willing to forgo the obscene pay for their corporate leaders.
That's just too bad. Far too many individuals in this country are suffering because these trusted institutions ripped them off. Who's bailing them out? These folks got eviction notices and a kick to the curb.
It's time to put our economy back in balance. Some sort of welfare
bailout may be necessary but the agreement cannot include pay to CEOs of affected lending institutions in such obscene amounts. Just say no to corporate greed.
© 2008, Vanessa: Unplugged!, www.vanessabyers.net