Andrew Weighs In On My Post, “Anectdotal Evidence Or Life In The Skycastle!”

On By southwerkIn business ethics, Capitalism, ethics, Government Failure, White Collar Crime

My buddy Andrew adds his thought to my recent post, “Anectdotal Evidence Or Life In The Skycastle!”

While I agree that a more up to date central title system will help keep mistakes from happening, it is not the problem. The problem is with the banks and how they do business. Thats all there really is to it.

I also agree that we should help out as many people as we can with getting refinanced and keeping their homes. This should especially be done for the people who did fall victim to deceptive lending practices.

However, we must keep in mind that not EVERYBODY who defaults on their mortgage is a poor victim in this case. At the end of the day, these people signed the papers to a mortgage that they couldnt afford. Just because external influences say that its the right thing to do doesnt mean that it ACTUALLY is the right thing to do. When we excuse sheep-like behavior from citizens, then we end up with a population full of sheep. Would you want your son, or any family member for that matter, to make a major life choice based on what external sources say is best, or do you want him to figure out, on his own, what is best for him and go for it?

Dont get me wrong, I do sympathize with the people who honestly fell for deceptive lending practices and fraud. Those people had no way of knowing that they were about to be taken for a ride.

The problem is, like you said, the numbers arent out yet. There is no telling how many people were actually affected by the banks inability to do a simple task such as record keeping. It could be less than 1% or it could be 50%. Who knows at this point.

I believe the banks should have to own up to their mistakes. We can do this by mandating a moratorium on foreclosures until this mess can be sorted out. After everything is sorted out, if you deserve to have your house foreclosed on, then you lose your house. If not, then you get to keep it. Like I said before, this is not mutually exclusive from showing mercy towards those who did fall for these lending practices. Im all for helping them refinance into a more fair situation.