Reply #127: The victims of the mortgage crisis are not relevant? [View All]

[baldguy]

So they should be victimized even more? As if scrimping & saving for years, finally getting what you thought was a good deal on the mortgage, but turned out not to be, losing you entire savings to the bank, defaulting, bankruptcy, losing the home & ending up worse off than you were before wasn't punishment enough.

The problems that caused the crisis in the first place - banks having a financial culture that serves Wall Street rather than the communities that they operate in - are systemic; the solutions most be systemic also. The banks profited from pulling value out of communities, so the equity ratio in those communities has to be repaired. Regulation is only one piece of it. Changing the culture of financial institutions by building value in local communities Rather than Wall Street is another. Which would then allow the bank to draw on the real equity in the community to underwrite loans to the community.

Pouring money into a Wall Street bailout - which we've done - only continues to prop up the existing failed system, and primes it for further, more catastrophic collapse in the future. By NOT offering a direct bailout to homeowners, you ensure the systemic problems in the mortgage market will NOT be fixed.