http://www.businessweek.com/bwdaily...20081031_008808.htm?chan=rss_topStories_ssi_5 "Chase has helped many families already, we feel it is our responsibility to provide additional help to homeowners during these challenging times" "The JPMorgan Chase announcement comes as the U.S. bailout strategy seems to be shifting from the initial approach of having the Treasury Dept. buy $700 billion worth of troubled mortgage assets from lenders, to investing directly in big banks to spur more loans (BusinessWeek, 10/29/08), and now toward a coordinated effort to restructure loan terms for individual borrowers." So wait a minute....First this money go to irresponsible banks, and now it goes directly to irresponsible people? US was build on responsibility and hard work, and responsibility is a result of certain fear. How these people will become responsible? But not to worry, all will be punished when this plan does not work... It is amazing how stupid or cynical US government is.
Think of it as welfare for the irresponsible. Or a flip side of the coin, a 'tax' on the responsible for having credit available to us all. Remember, at no point can this debt-ridden society afford secular deflation like in the depression. This will have very supportive implications for municipalities, overall housing trends, etc. For the collective, there is a benefit. All at the expense of a great moral failure. In a way, it makes the game of capitalism even more difficult to play, when you never know if the rules will tilt to your favor or detriment.
JP Morgan is just trying to front run the new president Obama, who have promised to freeze foreclosure for three months.
i'm not sure i understand. i mean, the precise location of this "irresonsibility". for example, if i got an ARM loan 2 years ago and therefore decided to move out of my apartament into a brand new house, that was build, pretty much because the bank would give me an arm loan, was the builder also irresponsible? how about the plumbing subcontractor? how about plumber's tax advisor who told him about SEP IRA? how about the broker who executed the IRA stock transactions, to buy 10 shares of L.brothers? where did all the "money" go?
US is probably the only country that when a borrower defaults, it is the lender that will take the blame.