Should the US government bailout or sue these reckless institutions ?

@ronnyb (6113)
Jamaica
November 24, 2008 8:18pm CST
So many lending institutions recklessly abondoned due process when lending to mortgages.In addition many rating agencies who were supposed to monitor the situation in order to ensure credit worthy persons were getting mortgages failed to perform their duties .The result is the sup prime crisis which now faces the US and consequently the world since many of the mortgages were repackaged and sold to companies all over the world.Now the world is on the brink of one of the largest recession caused by greed of the lenders.The mortgage lenders made an enormous amounts of money between about 2004 to 2007.During this time the housing market boomed and mortgages were doing quite well. Now it is my view that since these mortgage houses did so well and benefited so much from Subprime they are the ones who should pay .I believe they should be sued for all the money they made during the housing boom and the money derived from the lawsuit be used to sure up the markets and protect the homes of ordinary people. I am aware that some of these lending agencies would probably collapse from some of these law suits and hurt some investors but already they have collapsed under their own weight anyway and I am thinking about the greater good ,that of the majority of home owners .At least their collapse would result in the recuperation of some of the money lost by ordinary home owners and could be used to offset some of their losses Where do you weigh in on this argument ?
1 response
• United States
25 Nov 08
I don't know if actually sueing would be the answer, but I do believe that individuals need to held accountable. From the realtors and mortgage officers (loan officers) who put buyers into homes and loans they could not afford, to their brokers who over saw - and made money from - the closings of these sales/loans, the banking officers who sold the products and repackaged the loans to make them more presentable to the investors, and finally the investors who went over board in buying up these bad mortgages just to make a quick buck and fatten their wallets all on the backs of people who really couldn't afford what was happening to them. I think these people should be charged with crimes (fraud and predatory lending for starters) with hefty fines and real jail time as the punishment. If they can't pay the fines, then all of their possessions should be sold off to pay them. I mean really, they bought all their cars/homes etc with money they made off of the bad loans they created!