Who do you Trust?

Sent to Power Lunch at CNBC

"Yes, the objections stem, in large part, from lack of trust in the banks.  But . . . WHY?  Why don't the people who, like my wife and I did, refinanced their houses with a sub-prime loan trust the banks?   A single sentence says it all.   The banks didn't deliver on the American Dream at little or no cost.  That's what was promised. It wasn't delivered.   The broker who wrote the paper on our house promised that all sorts of nice things would happen as a result of  lowering our interest rate, improving our credit score and thus be it possible to refinance the loan again in  about six months. Nothing like that happened.  When the ARM was about to kick in, we realized that we were not going to be able to pay the bill.  We were wise enough this time to look at the options and do what we should have done a year before.  We declared Bancruptcy, sold the house and moved to a much smaller apartment.  We took the hit.  And we did it with full knowledge of what we had done to cause our plight.  We knew we were lying about our income and ability to pay.  We were encouraged to do it.  BUT THAT DOESN"T EXHONERATE US! We let our emotions -- our desire to have our cake and eat it too -- override our ethics.  We wanted it. We wished for the life we wanted to live and that the loan would make possible, we thought.  That is why some people don't want money sent to wall sreet (i.e. the banks)...they want it sent to them.  

Ask them.  Offer them this plan.  The government will  find out what each person/family who can't pay their mortgage and has a sub prime loan how much they stll owe.  That amount plus 10% for the fact that the government let them down will be sent to them in the form of a direct deposit or a money order in the amount they need .  (Not serious please)

 

They have been taught that they have a right to stay in their homes, live the American Dream and to medical care. They have been told, even though everyone knows it is not so, that they are the driving force, with their unlimited desire for wealth and their pragmatic belief that anything is possible, behind the whole economy.  Now, when they really need it the govenment lets them down.  They already take taxes; now they want to take their home, just like the bank wants to.

 

Can you blame them for being a little mistrustful?