Unpopular Truths About the Lending Crisis

Firstly, not everyone deserves to keep “their” home, even if this is not politically tenable.

If you can’t afford to own your home, that is unfortunate, but that doesn’t mean you should still get to keep them.

Whether you like the Bible or not, there’s a pretty good passage that is mighty relevant, Luke 14:28-30:

For which one of you, when he wants to build a tower, does not first sit down and count the cost, to see if he has enough to complete it? Otherwise, when he has laid a foundation, and is not able to finish, all who observe it begin to ridicule him, saying, “This man began to build and was not able to finish.”

The problem is getting blamed on “predatory lending,” but for every dollar worth of that corruption, on the part of bankers and realtors, there was also a dollar worth of predatory borrowing on the part of average individuals that didn’t “count the cost”, who, more than likely, lied about their income, and took out loans that they should have known they could not repay.

It is easy and convenient to blame this all on people in New York City that you don’t know; it is far harder to accept that your realtor, and your local “mortgage officer,” and YOU were jointly responsible for collusion to fraudulently take out loans that you could not repay.

The Enron “crisis” showed that the big accounting firms are capable of really big lies; the mortgage crisis demonstrates that the same morality has permeated society a lot more deeply than that.

FYI, blog entry shows that the major American presidential candidates aren’t willing to reveal this sort of truth.

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