Wednesday, November 19, 2008

Isn't This What Got Us in This Position?

Seattle Savings Bank gets slapped for not handing out enough money to low income projects.

Seriously?

Isn't this why the banks got in the financial crap hole they are in now? Loaning money based on socially acceptable traits versus the ability to repay!?!

For more than three decades, banks have been required to meet CRA requirements as a way to promote their involvement in the community, a regulation that hasn’t changed, even during the rough economic environment that banks operate in today, according to the FDIC.

Banks are audited once every three years to make sure they’re in compliance and are judged based on the number and amount of loans they make to low-income and affordable housing groups, their investments in the community and the services they provide, such as housing counseling.

Um...BARF.

Maybe it's time to change that rule. How about this crazy idea? If you can't prove the ability to repay a loan you DON'T GET A LOAN!!!

I know that is just mind blowingly outrageous but I mean really. Is logic just not accessible in DC?

3 comments:

Sandee (Comedy +) said...

It's the government sticking their nose in business. The government does a very poor job running anything. This country is going off the deep end. Have a great day. :)

Sandee (Comedy +) said...

Redistribution of wealth. That's what this is all about. Yikes. :)

SpeakDog said...

This? This pisses me off. Giving money to people who can't pay it back is just plain old bad business.

Remember the good old days when people had to WORK and save their money and were then rewarded with a home of their own?

Now, the government (in the interest of faaaaairnessssss) wants to give houses to poor people.

Sorry. Poor people live in apartments or rented hovels or whatever. That's just life.