Also, remember they are only a “deadbeats” if they are of modest means, if they are well-to-do or a corporation, it’s just practicing sound financial judgement. Of course, the well-to-do default at higher rates than others.
The current housing bust should be viewed for what it is: a systemic market failure – not a moral failure on the part of millions of American homeowners.
In fact, I’d go as far as to say, that “strategically defaulting” is the moral choice rather than propping up massive systemic fraud.
The big banks are not just amoral but immoral. We need a restored morality, which must grow again from the ground up. We won’t find remnants of it in existing structures. Paradoxically, strategically defaulting is a step in the right direction to restore morality.
Geithner helps the big banks unload all the risk and bad bets on the people and then he turns around and threatens the people from walking. That is the definition of “GALL” and will blow up in his weaselly face.[/quote]
Arraya, I’m with you on this. But maybe I’m just too old, or too cynical. In all likelihood, I’m both. But I digress.
Any snippet of idealism I’ve managed to retain through the years was destroyed in the events of the last couple years. I’m seeing a situation in which the largest and most powerful financial institutions in the world have clearly played a significant causal role, and yet: (1) they go unpunished; (2) they are not only completely unpenitent, but they refuse to take even the tiniest amount of blame, and they’re arrogant, to boot (if anyone would like to dispute this, I suggest they check out YouTube film of bankers/financial execs testifying before Congress in Feb 09 and Jan 10) ; (3) they complain about how broke they are (and some don’t complain about being broke at all), and the government gives them all a huge pot of cash; and (4) they are continuing to engage in much of the highly risky behavior (and being handsomely rewarded financially for it) thought to have brought their institutions and this nation to its collective knees.
I’d feel better about things if the outrage of the poor and the middle class was directed at both Congress and these modern day robber barons. But every day I see megawealthy media demagogues telling their faithful (and significantly less wealthy) followers that their constitutional rights are being violated by members of Congress who want to vote against extending tax cuts for the wealthy, and that the current administration is causing a loss of jobs by their ceaseless persecution of corporations (the same corporations that have been and continue to outsource jobs overseas). I don’t blame the talking heads for doing this; after all, it is their constitutional right to do so. But I admit to succumbing to an overwhelming sense of hopelessness when I think of middle-class people, some of whom will never in their lifetimes make more than $25K per year, who are in a never-ending struggle to put food on the table, clothe their children, and keep a roof over their heads, blindly following their “idols” and mindlessly repeating every one of their distorted maxims, often word for word.
The power and influence held by these massive financial institutions is frightening to think about, and they have our elected officials in a stranglehold. While I agree with your statement about the amorality and immorality of the big banks, there are many of our citizens who, despite being affected by their actions, do not share in this indictment of them. Instead spurred on by their idols, and with the conviction borne of their own internal prejudices, these citizens insist on blaming a ridiculously small, statistically insignificant group of people for the entire financial crisis, or holding two or three congressman responsible for it. Instead of directing their considerable outrage at the relatively few enormously powerful individuals who have gradually stripped them of their insignificant wealth, their job security, and their dignity, they voice their concern over the repeal of tax cuts that will never, ever affect them or anyone they know, or fret about the fair treatment of corporations who continue permanent job layoffs in the US while shipping those same jobs to India.
Until the middle-class citizenry of this nation universally recognize the lack of morality in the big banks and other major players in this debacle, there is little chance of a restored morality. I.e., much as I like the idea of walking away from a mortgage issued by a morally- and ethically-bankrupt institution in theory, if it is not a universal endeavor, it will not be successful. Because our elected officials are busy representing the interests of the large financial institutions, we cannot count on them protecting the citizens of their constituencies. Let’s face it: if they had taken action against the banks two or three years ago, there might not be the need for “strategic defaults” today.
Arraya, I apologize for what may appear to be my apathy, or indifference to the situation. It’s not that, I assure you; it’s just a different perspective, albeit a jaded one. But I am thankful for your insight, your concern, and your conviction. I hope that you’re right on this one, and that the action of a few can force essential reform.
