Some economic fixes from Ms. Ali
The other day I was having coffee with Ms. Ali. She and I were discussing the awful unemployment problems along with the general state of affairs of the country.
She tossed the paper she had been reading aside.
“Well, it sure looks like the politicians have really bunged things up to the point where nothin’s working, including them.”
“That’s true-so what would you propose we do about this? You think there’s any real solutions to this mess?”
“Well, first off: I’d fire all of the politicians. Every single one of them. They’re coming up for election next year, remember. Might do us a world of good to get rid of those that aren’t working to help us…seems to be most of them.”
“Well, that’s a good start-but there are even more problems to fix…like the banks, and taxes, mortgages, you name it, there’s something broken.”
Ms. Ali countered with this:
“The banks-I’d reinstate Glass-Steagall. Sure, the banks will whine about changing the rules, but they’ve sure broken a lot of the ones we had to begin with, right? Then I’d make them forgive every single foreclosed mortgage.”
I was shocked. “Forgive all the foreclosed mortgages? Are you crazy? They’d never go for that. They need to make back the money they spent on the loans they did. ”
She was rather blunt about that.
“The way I see it, the banks lent out all that money to people they knew couldn’t pay them, they upped the ante for those who had those variable rate mortgages so that they couldn’t pay them, then they pulled the rug out from under those people who couldn’t pay them back, and lastly they got money from the government to bail them out from all those loans that went bad on them. I’d say the banks made enough money from their little scam.”
“But it was a honest deal-the homeowners signed those contracts with the promise to pay them off.”
Her contempt for the banks was pretty precise:
“And when they didn’t explain to them that the mortgage was gonna increase every other month without their say-so, didn’t disclose every single itty-bitty point in the fine print, then I’d say that’s fraud. Last time I checked, fraud was a crime.”
I conceded on that.
“Well, you might have a point-you know there’s been a lot of talk about how some foreclosures were done illegally, and without proper paperwork.”
“Ayuh, and that’s why I say we prosecute those that did the entire mess from those mortgages. First for the scam they pulled on innocent people, and then for the mess they created when they decided to take back the houses they sold under false pretenses with bad paperwork. It ought to make some fine work for some unemployed lawyers out there!”