Quote:
Originally Posted by Caligari
I do agree that right now for instance it would be easy for the banks to turn around and simply fuck their customers a little more to make that money back.
But here's the thing- they are already fucking their customers. Every week it's some new charge on debit cards or credit cards etc and they can do whatever the hell they want.
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Business is business. Any business can charge what they want for services. You have the option of finding another bank to give your business to.
The "banks" were not the problem. Bad loans were made possible primarily by being able to hide them in mortgage backed securities using various strategies. Loans are sold. You can't sell shitty loans if you don't have buyers for them. You have buyers for them when they are no longer being identified as bad loans. Banks make these kinds of loans in accordance with their ability to sell them.
The short version is that the entire financial system failed. It wasn't just "banks". Banks weren't the ones giving shit investments AAA investment ratings, or figuring out how to better and better hide bad loans and bad debt in complex financial instruments that the creators themselves had a hard time explaining.