Thoughts on the bank bail-out
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I don’t know when the rules changed, but apparently they have. The no-fault, no-blame, no-responsibility line of thinking has come to a new low with the proposed $700 billion dollar bail out of our banking system.
Common sense would indicate that if you borrow money, you are responsible for paying it back. If you really can’t make the payments, don’t borrow the money in the first place. I’m old-fashioned. I expect my bank to take care of the money I deposit and loan it only to those who are likely to pay it back. And they need to look at what that money is being spent on and decide if the asset is worth the money being put into it.
This financial crisis did not happen overnight. Listen to radio, TV, or check your email and you will see ads for easy credit, as well as encouragements to Buy Now - No Payments til 2009! Borrowing money has become a way of life to many, and younger folks in particular can’t remember a time when you were expected to pay in full when you purchased an item.
The amount of the bailout will put a burden on the U.S. taxpayers - essentially a loan from each of us to a failing institution. I don’t think that is a good investment, and not one that I want to make. If this bailout passes, and I think it will, we have only delayed the eventual crash….and when it comes it will not be something that the government can salvage.
We need to let our free market system work, and keep the government out of it.
Technorati Tags: banking crisis, financial bail out, common sense lending
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