First they get you in a room, strong arm you, insist that TARP is THE only way to survive the coming recession/depression… they scare you.
You don’t want to be the guy the whole country looks at and says “He wouldn’t sign! It’s his fault that this recession happened.” They reassure you that this will help. There aren’t too many restrictions that would interfere with your healthy business – so you suck it up to help those who are in deep. After all, the Feds made you write these mortgages that you knew were bad business…
“Financial institutions that are getting government bailout funds have been told to put off evictions and modify mortgages for distressed homeowners. They must let shareholders vote on executive pay packages. They must slash dividends, cancel employee training and morale-building exercises, and withdraw job offers to foreign citizens.”
By STEPHEN LABATON, NY Times
Yet again, those who are prudent will pay the bill. (See Mortgage Bailout for mortgages up to $729,000)
Filed under: Economics |