Monday, November 7, 2011

Lending: Paying Money Back

I'm going to switch gears here.  Usually, I am the first one to rip on banks getting bailed out with our tax money.  People are pissed.  Occupy Wall Street happens. 

I'm going to play devil's advocate here.  The American population does not seem able to differentiate "lending" and "giving."  There is a difference.  When you get a loan, it means you have to pay it back under the terms and conditions set forth in the contract. 

Defaults on student loans are at an all time.  If we are going to bitch about free handouts, let's bitch about free handouts.  Students were more than eager to get money for college, then were shocked and surprised when it was time to pay it back.  Same with home mortgages and credit cards.  We all know that nobody gives you a chuck of money up front without strings attached.  God help us if our population is really that stupid. 

Did the banks take advantage?  Of course, but our need to 'keep up with the Jonses' had the population playing right into the banks' hands.  Now the bitching and moaning starts.  Banks are not lending, because people don't PAY IT BACK.    In the meantime restaurants are full, Starbucks thrives, shopping malls are full, cell phones proliferate, etc, etc., etc..... 

Yes, not all in financial hot water fit into this category.  Life events happen.  However, there seems to be a disturbing pattern........

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