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Friday, March 11, 2005

Running to the government for protection

A new law may be passed that will limit people's ability to declare bankruptcy. No longer will it depend on medical bills, or if you lost money on a small business.

All across America, people who have made bad financial decisions are running to the government for help. These people are losing money each day because of their mistakes. Now, they are asking the government to help by bailing them out. Too many people are using bankruptcy as an option. Who are these people running to the government for help?


"We started lending to people whose credit reports indicated were horrible credit risks," said Saul Goodfellow of Morgan Chase, "then these people didn't pay us back! I couldn't believe it. After we took a chance on them when no one else would, that is how they repay us, by not repaying us. I mean, when you make risky loans, you are supposed to make a lot of money, not have high risk debtors default on you! Don't they know the rules?

"Whey should we be held accountable just because we made a few bad loans? It's not our fault. A person's credit score only predicts that they will not pay you back. It's not like a crystal ball, how did I know that people's low scores would correlate so much with them not paying us back?"

"It's the shareholders' fault, not mine," said Clyde Johnson, VP of Credit Suisse First Boston, "they wanted better returns on their investment. They are so obsessed with quarterly results. What was I supposed to do? I had to lower standards in order to get higher percentage rates on loans. They made me do it.

"A lot of people are saying it's our own fault, we should have known better. But tell that to my daughter, who's not going to get a new Audi TT cabrio for her 16th birthday. Why should us banks have to suffer? The government should protect us by forcing them to pay. It's not fair! Next you'll be telling me I'm going to have to wax my 360 Modena myself."