Who’s Reponsible and What Now?
If you have been paying attention, there appears to be due diligence by our government in listening to leaders in the financial community about what can be done regarding the current state of the economy. There seems to be a lot of people in very nice suits pointing fingers at each other and using ten-letter words to explain to all of us about how the current crisis is the result of consumer failures. Deliberations are held daily about whom the government should “bail out,” the consumer, the lender or nobody.
The bottom line is that consumers have lost faith. We have lost faith in our government’s ability, or even willingness, to regulate the banking and credit industry because as these leaders have explained, our financial institutions have to be able to compete in the global market for marks, whoops, customers. Some consumers have even lost faith in their own abilities with the realization that they have been duped. We now have whole communities that are showing the emotional signs of victims that have been scammed by predatory scam artists.
Those consumers who do not fully accept their predicament as wholly their fault are trying to determine who, other than themselves and those guys with all the big words, may actually be to blame for what appears to be a widespread problem. Sadly, while consumers are examining ways to deal with their position, they can also fall victim to yet more scams, scams that offer “simple” solutions for helping them to deal with their financial problems. The internet provides the perfect avenue for scam artists to take advantage of consumers who want answers and simple solutions.
As the very well-educated men and women on TV with the suits have explained we have a credit crisis, banks are refusing to lend. According to them, this credit crisis is responsible for our failing economy, the devaluation of the dollar and all sorts of other bad things. Banks must lend! What if we don’t want to borrow? What if we’re fed up? What if Dave Ramsey’s ratings are headed through the roof? What if Dave Ramsey is responsible for the credit crisis?
Can this nation survive if we all refuse to reward the bad behavior of our financial institutions by simply refusing to borrow? Maybe then politicians would listen to consumers rather than the fat cats that are earning yearly bonuses that would pay off 10-15 average mortgages, even if they were subprime mortgages.
There comes a point where you just don’t care anymore. Let them take the house. You examine your options. What can they do? Realistically when people have taken on a 30-year mortgage, while trying to pay ridiculous interest rates on credit cards and then they realize that they have been scammed, it’s not a dream. It’s a nightmare, a nightmare that needs to end. With all the sincerity they can muster, the very same financial institutions that got them into this mess and their partners in crime, the lawyer, will tell you that if you do not pay, it could ruin your credit for possibly ten years. Let’s see; the foreclosure/bankruptcy will be on your credit history for one-third the length of the mortgage and darn it all, you may not be able to get another credit card; it’s not much of a threat now is it? Given the stress, for some consumers, even if there was a jail sentence involved, it wouldn’t be much of a threat. Some would rather go to jail than give these people another dime.
So, where do we go from here? As time goes on, consumers are beginning to exhibit signs of acceptance. Take the house, take the car, take the furniture, the 401K and ruin the credit, especially ruin the credit. Acceptance. Consumers will rent, find private financing through individuals, build savings and raise the kids to be smarter than they were. That’s the American dream.