In June this year I was trying to find a secondary example for the logic in this:
1) hospitals are required to see sick people
2) you have to buy insurance because hospitals are required to see you.
Here’s the circle from a government lawyer:
He said Congress had the right to regulate what uninsured Americans must buy because they shift $43 billion each year in medical costs to other taxpayers.
Today we find the government is suing banks for making bad loans.
Or in a more helpful map
1) the government pushes banks to give mortgages to those who can’t afford them
2) some banks almost go bust (seriously do you need a link?)
3) the government forces banks to take tarp money
4) banks try to pay back tarp money but government won’t take it
5) the government sues banks
The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value.
Fannie and Freddie lost more than $30 billion, in part as a result of the deals, losses that were borne mostly by taxpayers.
I know I am but a lite peruser of the news, but seriously? What the hell?
UPDATE: The good news is maybe one day you will get a call out of the blue from one of these mortgage brokers letting you know that you waste too much money on TV and that your mortgage should be your priority. Yes, that’s what they do in the UK now. Apparently the government knows your priorities there better than you do.
“Some people won’t cope when interest rates rise, but for others there are remedies,” said Richard Banks, the AKAR chief executive who is a former director of Alliance & Leicester.
“They need to think about what is their most important debt. It is not their credit card or renewing their Sky subscription, or going out for the latest mobile technology. It is their mortgage.
“We want customers to look at their finances and change their behaviour.”
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