Friday, June 19, 2009
Borrowed too much? Blame the banks!
Why banks must keep the repo man from our front door
A very strange analysis from Anne Ashworth. Basically, if you borrowed more than you can afford then blame the bank! I'd love to see that logic applied to a business loan. Quote: "The banks, especially those that are state-owned, must persist in their current stance of showing forebearance towards borrowers who are struggling with their repayments. After all, it is the past actions of the banks that have helped to bring these borrowers to the brink." There is a kind of twisted logic in there - failed banks should support failed property speculators.
Posted by quiet guy @ 10:06 PM (877 views)
3 thoughts on “Borrowed too much? Blame the banks!”
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dbc reed says:
Not for the first time recently the comments by the readers underneath the article are in opposition to the bail-out-the-over-borrowed homeowners line being pushed by the paper.The comments are similar to the early days of Housepricecrash when the proposition that houses were overpriced was gaining ground.Is this another issue like Iraq,Afghanistan etc where the political establishment is not keeping up with the public?From the preoccupation of a vocal minority, the idea that houses are over-priced and that something should be done about it, now appears pretty general.
stillthinking says:
Interesting comment below the article,
“Do some research. It isn’t the banks that cause most Repos it is the second lien secured loan (aka consolidation loan) companies that do so. They are picking up business because the banks won’t lend to 1 in 7 UK citizens. They WILL evict you pronto if you default. Repossessions will rise in 2009-10.”
I always tend to think that the repossessions are against those who just over-stretched themselves on the actual purchase, but this suggests that really houses are getting repossessed to pay off debt-binge consumption of cars and the like. Maybe not even that, perhaps since 2007 people are attempting, like the government, to go into additional debt as a method of tiding themselves over until they get a job again.
Having had some problems with debt in the past, student loan, nothing really, my experience was that the banks don’t actually deal with problem debtors themselves, but hand on the debt to recovery companies, who are unlikely to abide by any social agreements between government and the main retail banks. It is hard to see that the government could actually change the law, which would be necessary, to stop debt recovery against assets without killing the lending market completely.
Puppee says:
nobody forced these people to go to the bank and get a liar loan self cert mortgage so how can you blame the banks its peoples greed that has caused this whole mess the answer slash property prices by 50% now this will help to save the economy and jobs instead of just proping up the property market yes my house will not be worth as much but hey no will any body elses.