tag:blogger.com,1999:blog-22980286.post3359842261079638469..comments2024-03-28T10:26:20.408-04:00Comments on Ponderings on a Faith Journey: A rant against the poorRobert Cornwallhttp://www.blogger.com/profile/04581876323110725024noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-22980286.post-17763401023258821682009-02-24T22:01:00.000-05:002009-02-24T22:01:00.000-05:00As an evil banker and Christian, here is my perspe...As an evil banker and Christian, here is my perspective for whatever its worth. <BR/><BR/>First, I saw Rick Santelli and actually I have always been a fan of his. He is on a program where most people are salesman or "talking heads", spouting off ideas with no real consequence. Rick reports out of the bond pits, he is a former trader that works with people betting their own money every day. Rick was showboating, but the point is simple. When people fail to feel pain, they will simply keep doing the wrong thing. The comment was made about a "moral hazard".. what that means is when people learn that someone will bail them out, they keeping doing the same behavior. A simple example might be.. if you found that if you speed, the police won't give you a ticket, you will probably keep going faster and faster b/c there is no responsibility.<BR/><BR/>As to the "widow", the obvious response is you can't make the exception the rule. The Bible might say she should look to her family first before going to the state. However, if there is a poor old woman who can't make payment, I think were are ok with that idea. Its the massive scale that gets everyone excited. Its the beginning of a class warfare where half the population is paying for the other half.<BR/><BR/>So.. what do I think needs to happen. I think banks have to suffer and homewoners. Banks make a bet on you when they make a loan. They risk grade you, the charge a rate based on that rate, they look at the collateral and make the loan. If you can't pay, the bank has to take the hit. On the flip side, if you can't pay for you house, you can't stay in it. These evil speculators are exactly who you need right now to buy the foreclosed house and clean out inventory. Its tough, its harsh.. but we have to rip the band aid off. House prices have to return to normal levels, otherwise we are supporting a false price level and will fail. The Bible is dead on about moths eating treasures and sadly that is where we are. <BR/><BR/>Sorry for the length<BR/><BR/>ChuckAnonymousnoreply@blogger.com