Last I checked “Sub Prime” means below prime. Sub Prime means risky, and it means the people who banks lend to have a history of not paying their bills. The banks decided to play in that game, no one twisted their arms. Giving a loan to someone who typically can’t pay it back is a dangerous game, and the banks got caught with their financial pants down.
I would love to play the stock market, betting only on penny stocks, knowing my broker will cover all my loses should I lose. In reality that is what the banks are getting away with. They took a gamble and now want the American Tax Payer to cover their gambling debts.
Remember Sub Prime, means Sub Prime… Why is anyone surprised the people who took out those loans can’t pay them back? And why should we bail out the banks who offered them?
The reason is simple, the banks now have the American economy by the “you know what.” We don’t have a choice but to bail them out. Maybe those bankers were smarter then we think, they approved high risk loans, with no risk at all. I guess the tax payers are the suckers.
September 28, 2008 at 12:32 pm |
With the lack of oversight and proper regulation, the game was “let’s see what we can get away with”. The Bush mentality did it to Texas and then did it to America. I can’t belive I helped put President Bush in office twice, I can’t afford to do it a third time. My 401K can’t afford it, but then again, President Bush/Senator McCain would be happiest if I died at my desk at age 78.2 and never touched a federal dollar or my own 401K.
September 29, 2008 at 4:38 pm |
it wasn’t lack of oversight it was the CRA & Bill Clintons Nation Homeowners Stategy, that caused this problem, and less congress revokes these to policies, the bailout is stopgap only, and the problem will just be perpetuated .