Posted by: kwa0430 | January 27, 2009

Banks and Dead Rabbits

Banking, dead rabbits, crows and the public; there doesn’t really seem to be a connection between all of these things. After reading the news for the last few months I’ve come to the conclusion that there is, in fact, a comparison that can be made.

We the public are like the dead rabbit. Economically we are broken, bleeding and, in many ways, dead. Banks on the other hand are like the crow. Picking away at the last remnants of a body once filled with life; they insist on satisfying themselves, thinking only of their own survival and well being without any regard for the corpse they feed off of.

How long will it be, with continual stories of the greed, gluttony and general overall excesses of financial institutions, before the government puts a stop to it? It was bad enough when they were playing with “their own” money but, now they have these huge sums of tax money going to them in the form of a bailout. Where are the rules? Where is the oversight we were promised?

I remember going into a bank when I was a kid to get a loan for my first car. The manager sat with me, discussed what I could realistically afford (hence the reason my first car wasn’t the brand new Mustang), and generally gave me some wise counsel in terms of finance.  

Thirty years later, financial institutions are trying to tell me that Jane and I can qualify for a 450,000 mortgage. This is supposedly based on some type of ratio between income and debt. Jane and I aren’t financial wizards but it wasn’t too difficult to figure out that they were nuts. Fortunately for us, we exercised our own better judgment and ignored what they felt we could handle.

I’m not necessarily in favor of government getting their fingers into everything, however, maybe it is time for them to step up to the plate and do what needs to be done. I think that the current situation proves that financial institutions are incapable of policing themselves. If financial institutions cannot govern themselves, then the government should reinstitute the laws and rules that were in place that protected the public.

I don’t ignore the fact the people’s own greed is also largely responsible for the current economy; but, people were only able to do what they did due to slack banking rules and a system that is designed to make a profit at any cost.

Kenadian

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