January 8, 2009
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Loans and Economies
I saw a story on the news tonight about the newest fix for the mortgage crisis - you know, the one where judges can re-write the terms of a mortgage to keep people from getting foreclosed on. They interviewed a guy who noted that it would be a bad deal because banks wouldn't be as willing to give out new loans.
I thought to myself "Hello! Are you listening to yourself? The reason we're in this mess (part of it) is because banks gave out too many loans. So you're saying that cutting back on loans would be a bad thing? If we had done just that a few years ago, we wouldn't be in the mess we are now!"
True, we wouldn't have risen quite as high, but we also wouldn't have fallen this far - whether or not we would be at, above, or below where we are won't ever be known, but continuing to hand out lots of loans would be like shooting yourself in the foot because it still hurts from the last time you shot yourself in the foot. Also, I have no clue if this proposal will even work the way it is intended. More than likely, it will have some disastrous consequence that everyone knew was going to happen. The point is, less loans isn't necessarily a thing to complain about outright.
Comments (1)
Economic loan is due to the point that most houses are now taken for home foreclosures, organizations are ending, and lack of employment is increasing. A disaster such as this is very escalating especially for property owners. Overdue home loan will topic a home to property foreclosed, especially if the house owner does not have other extra resources of earnings.
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