Daily Archives: August 10, 2007

Banks

Dh is addicted to the financial news networks, so for the past couple days I’ve had front row seats to the mess taking place in the markets.
It’s interesting to watch the different spins. Politicians say whatever will get them more votes, broadcasters say whatever will get them more viewers, banks say help.
I’m not a financial expert, but I don’t think it took a psychic genius to see they were going to run into trouble.
Six years ago I was looking at a potential house purchase. One bank said I could have “anything I wanted.”
I was shocked. Anything?
So I asked. My favorite houses in town are close to a quarter million. I LOVE them. Lots of brick, stone and wood. No way can I afford those houses. But the banker said if that’s what I wanted, no problem. Several friends bought big houses they can’t afford. And judging by the news, it looks like the banks handed out mortgages like they were penny candy. It’s kind of like the pre-approved credit cards ALL my students get applications for when they turn 18. Shoot dd’s already getting that junk in the mail. WORSE her on-line alias from Yahooligans days is getting that junk in the mail.

On the news they keep saying something about bail-outs.  About how banks need help.
That might be true. But they also need to change the way they do business.