Why Do Banks Get All The Blame?

pqrdef

AliceJenkins wrote: »

I'm not saying borrowers have no responsibility, but anyone who takes on any mortgage or loan of any size, should always of worked out their budget before taking it on.

They did. But they were offered ridiculously affordable mortgages. Brilliant introductory offers, and when the offer ran out, you just switched to another lender and got another introductory offer. You'd have been crazy not to take advantage. It was brilliant.

Until you lost your job. No introductory offers for the unemployed. But nobody factors in possible unemployment when taking on a mortgage, or there wouldn't be many mortgages.

The root of the problem was the inadequate response to the emergence of new manufacturing economies, mainly China. (And we've made no progress on that, because we still don't have a clue what the West is now going to do for a living.)

Low interest rates were the only answer they came up with. People were supposed to take advantage of them, or there wasn't any point. And growth in construction could mask a decline in manufacturing, and at least it created jobs at home, not abroad.

Turned out the tide of unemployment couldn't be turned back.

So now we're still paying the interest rate card, but instead of producing the intended orgy of borrowing and spending to regenerate the economy, it's just producing an orgy of overpaying. All our hard-earned goes to the banks, where it allows Frau Merkel to keep stepping up the haircuts, to spare the Germans their payback time.

bendix

You're wasting your time Alice. MSE is no place to talk about personal responsibility: everything is always someone else's fault, and if it can be blamed on the evil tyranny that MSE thinks of as banks, all the better.

You're in debt up to your ears and can't repay it: there there, MSE-er, it's not your fault, it's the banks.

You're obese and don't want to accept responsibility yourself: there, there poor love, it's not your fault. McDonalds 'seduced and cajoled' you (copyright SteveJ) into eating their crap and not exercising. You're special; nothing is every your fault.

Simple people like simple solutions, and if it's easy to find a bogeyman to blame, then TruckerT and his ilk will happily blame them, without for one second thinking they may have a part to play in it.

Because, after all, the modern western adult is no longer an adult with freewill and a mind of their own; no no no, they're constantly being manipulated to do things they dont want to do by some evil forces.

Etc etc ad nauseum.

The_White_Horse

go to the debt board if you really want to be made sick. there is no blame there. borrowing loads and getting into debt then not being able to repay is encouraged there. the conversation is:

Hi everyone, i earn 11k a year but i racked up 89k of debt on loans and credit cards

((((((((((((((( hugs )))))))))))))))) poor you, this is not your fault.

thanks everyone, you made me feel so good I went out and bought a mulberry bag for 5k

well done you, you deserve it. ((((((((((((((((((((((((((((hugs))))))))))))))))))))))))))))

______________

The real reason, the elephant in the room in fact, is large bloated public sectors and their pension liabilities. Still, far easier to blame the banks for lending to idiots.

TruckerT

There is a minority of the population who are in unmanageable debt, but we are all paying the price for the damage which the banks continue to create

TruckerT

daveyjp

bendix wrote: »

You're wasting your time Alice. MSE is no place to talk about personal responsibility: everything is always someone else's fault, and if it can be blamed on the evil tyranny that MSE thinks of as banks, all the better.

You're in debt up to your ears and can't repay it: there there, MSE-er, it's not your fault, it's the banks.

You're obese and don't want to accept responsibility yourself: there, there poor love, it's not your fault. McDonalds 'seduced and cajoled' you (copyright SteveJ) into eating their crap and not exercising. You're special; nothing is every your fault.

Simple people like simple solutions, and if it's easy to find a bogeyman to blame, then TruckerT and his ilk will happily blame them, without for one second thinking they may have a part to play in it.

Because, after all, the modern western adult is no longer an adult with freewill and a mind of their own; no no no, they're constantly being manipulated to do things they dont want to do by some evil forces.

Etc etc ad nauseum.

Bendix- answer the question I posed earlier. Why can't I get a 110% mortgage anymore?

kabayiri

The general public are not to blame for the losses the banks have incurred. All they did was accept deals on offer, and has been pointed out mortgage repossessions are still relatively low. Losses on commercial loans are much higher.

I do NOT accept any responsibility for the poor loan deal between RBS and Al Fayed over the Paris Hilton hotel (some £90m rolled over a number of times), nor the deal between RBS and the owners of LFC. These deals are far larger than your typical mortgage borrower's loan.

When the bank lends you £100K and you can't pay it back; you have a problem.
When the bank lends you £100m and you can't pay it back; you AND the bank both have a problem.
The old too big to fail rule eh?

StevieJ

TruckerT wrote: »

I'm talking about some basic priniples of good business practice. needs and wants don't come into it, except that businesses exist in order to satisfy the needs and wants of the customers (in order to make a profit for themselves)

TruckerT

I think they call it due dilligence

StevieJ

bendix wrote: »

You're wasting your time Alice. MSE is no place to talk about personal responsibility: everything is always someone else's fault, and if it can be blamed on the evil tyranny that MSE thinks of as banks, all the better.

You're in debt up to your ears and can't repay it: there there, MSE-er, it's not your fault, it's the banks.

You're obese and don't want to accept responsibility yourself: there, there poor love, it's not your fault. McDonalds 'seduced and cajoled' you (copyright SteveJ) into eating their crap and not exercising. You're special; nothing is every your fault.

Simple people like simple solutions, and if it's easy to find a bogeyman to blame, then TruckerT and his ilk will happily blame them, without for one second thinking they may have a part to play in it.

Because, after all, the modern western adult is no longer an adult with freewill and a mind of their own; no no no, they're constantly being manipulated to do things they dont want to do by some evil forces.

Etc etc ad nauseum.

Bendix, answer my question, who is responsible for the RBS share price drop from £7 to 25 pence ?

pqrdef

bendix wrote: »

You're in debt up to your ears and can't repay it: there there, MSE-er, it's not your fault, it's the banks.

It's only redistribution. If credit card users are daft enough to pay absurd rates of interest, the banks will cheerfully hand their money over to those f*ckless enough, or canny enough, to take advantage.

The banks aren't bleating about unsecured consumer debt. It's still profitable, for them. They're still falling over each other with the 0% balance transfer offers.

StevieJ

A shopkeeper secures their premises at night to avoid being robbed, now if they forget to do this one night and are robbed are you saying that it is the (a) thieves fault (b) The Govt for not chopping hands off when theives are caught (c) The shopkeeper for leaving his shop open?