category

Predatory lenders return as loan modifiers

"Grandma, what great loan modifications you have got!"  "All the better to help you with, my child."

"Grandma, what great loan modifications you have got!" "All the better to help you with, my child."

Loan-mods are just subprime, predatory loans under a new name. When you’ve got someone who can barely afford their home, and you promise to reduce their payment in exchange for bigger payments down the road (you know, when the housing market has recovered and they have a good paying job again) all you’ve done is recreate the old model.

So it’s not just that the old gang has found a new racket. It’s that the old gang has had their market rebuilt — with the government’s approval — and they’re getting work again.

Really folks, we need to do something about the blatant merging of business and government, to the point where the two are becoming indistinguishable.

While the United States of America certainly has its problems, living in the United States of Investment Banks would be far worse.

Comments are closed.