NPR

I haven't posted in a long time - Shame on me. I am really good of thinking of things to post when I'm driving too, probably because I have no way to note it down or post it. Anyway, this one I remembered.

Last Thursday (I think), Steve Innskeep or Carl Castle or someone on NPR was interviewing a Harvard MBA about an MBA code of ethics which the subject had developed. The NPR guy said something during the interview that roughly was, "the bank gives you a loan it shouldn't have, and you get foreclosed." That phrase struck me enough that I tuned out most of the rest of the interview.

I should note that the phrase was not the focus of the question at the time. Rather it was just tossed off like it was a common knowledge fact. For example, it was said in the same manner that someone might mention that if a car runs out of gas, it won't run.

What drivel! Does anyone else see a cause and effect problem there. The question implies that if the homeowner is subjected to a foreclosure, it is, inter alia, the BANK'S fault. It does not even allow for the idea that just possibly, in the ultra rare case, something other than the evil bank might be at fault when a foreclosure happens. I dunno, maybe the homeowner lost their job and couldn't make the payments. Maybe they are an addict and chose not to make the payments. Maybe the homeowner violated another term of the mortgage? Maybe the homeowner should have known better than to take out a loan like that? Maybe, the homeowner lied on the loan application. I'm sure though that someone thinks that last one is the bank's fault too; after all they should have anticipated that borrowers might lie and thus be responsible for protecting the borrower from his/her own stupidity and greed.

CAVEAT: This post should not be read to imply that I think banks are blameless - I happen to detest big banks. However, I am really tired of having John Q blame everyone, banks, government regulators, etc. EXCEPT the homeowners.