Quote:
Originally Posted by martyh
Alan ,rich people do not lend money ,banks and finance companies lend money .Yes questions should be asked as to why the sub prime market was allowed to get so uncontrollable but in the end it was the people borrowing the money who defaulted .You can't keep blaming "rich people" and "major businesses" for the worlds ills.Quite a lot of the problem was ordinary people wanting things like houses and cars that they never had any chance of affording
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The reason they cannot afford it is becuase wages have not be rising fast enough because of a decline in union power (along with high unemployment) which the rich and major businesses have also done
---------- Post added at 14:33 ---------- Previous post was at 14:32 ----------
Quote:
Originally Posted by LexDiamond
It is the lenders fault? Where is the individuals responsibility in your world? The borrower should make sure that s/he can repay what they borrow. It is sad that there are way too many people in society that think like you and simply try to pass the buck and are unwilling to take responsibility for their own actions.
The reality of the situation is this. Small businesses rely on a certain amount of credit to fund working capital requirements. This funding allows them to operate and hence employ people. This funding was withdrawn post credit crunch because people had borrowed what they could not afford, defaulted and therefore taken money away from the banks leaving the banks in a position to not to be able to lend to credit worthy people. This is in fact a major contributor to today's unemployment levels.
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So you agree that the rich and major businesses are not doing what is in interest for most of us?