Thursday, September 24, 2009
What is a good risk?
If "risk taking" is what bank loan applications are all about, and ultimately home loans, and ultimately, buying the American Dream is all about, who is it that decides what a bad risk is?
U and Me, that's who decides. And we have been a country making an Ass out of U and Me for a while now. And we're making an ass out of USA in the process. What is it that we all assume? We assume there are Americans who don't want homes.
We decide "risk" collectively, by sheepishly agreeing that this person doesn't deserve a home because of x, y and z. And the banks are all too happy to agree with us.
Banks: "Okay, if the people feel that person doesn't deserve the American Dream, we won't give him a loan! Sure, we could give him a forty, fifty, or sixty year loan, because that's what it takes for a loser like him to earn his American Dream, but we draw the line at 30."
This inevitably leads the bank to the conclusion that there are people who are not deserving of the American Dream. Which in turn leads The People to not even realize it is they, and their sheepish ways, that set that system in place.
But, in times of trouble, when a bank has to auction off all of these "troubled assets", we find that the only people allowed to come to the table and buy the cheaper auction priced homes, are people who have cash-in-hand. (Most auctioned homes are auctioned for cash in full, or as low as 80% cash) This immediately rules out anyone who needs to take out a loan for a home. It means the only people allowed to buy repossessed or cheaper priced homes, are wealthy people. What I'm saying is that every home in America that is auctioned by a bank is given at a bargain to a wealthy person. That a person without money is a "bad risk", was assumption number one, but that "only people with a lot of money should be able to buy the most affordable homes", is assuming a whole bunch more.
I say, let's assume that every American deserves their American Dream, and every bank has the responsibility to provide for that possibility, no matter what finger pointing might be going on by those who say "he doesn't deserve". As soon as you hear that, your equal rights buzzer should be going off. He does deserve, he's just off the beaten path, or at his own pace.
The result of ignoring equality in America always finds the same response. Sooner or later, the wounds become too visible, and a movement rises up. What sort of blood soaked bandage is this current economic climate?