No wonder banks were so reckless..
I’ve been attempting to get my head around this thing for a while. How could banks have been so reckless, all the while knowing what the future held? As we all may know by now the Feds have done it. Last week they decided they would help poor little Bear Sterns from a messy collapse. It may not stop with them either. There must be a line at the Feds doorstep by now. After all its not the banks fault for their poor practices and questionable ethics. It must be the taxpayers fault, since we are the ones who will pay for this in the end. What this says is that banks are basically allowed to use poor standards and practices , jeopardize the economy and be bailed out in the end. When it comes to large banking institutions, it seems they are.
Don’t get me wrong, I am not against what the Feds and JP Morgan did to help Bear Sterns. I believe that the ramifications, of allowing them to fail, would have been huge. Poor performing Securities would have been dropped and written down by every institution on Wall street. But maybe in the end that is what needs to happen before the economy will begin to fight its way back. Can the government bail out every institution facing trouble?
posted in Financing, Foreclosure, Mortgages | 0 Comments
