To start with one example, we've all heard about people getting rewards based on closing mortgages, without regard to the ability of the mortgage recipient to actually pay back. Anyone willing to spend a few minutes on the web can find a lot of material that supports this statement. The question we've to ask ourselves honestly is this: if I was a mortgage broker, would I stay with the company that will reward me only for high quality loans that are closed, which means I'll need to work a lot more, and turn down many loan applicants, or would I go work for a company where I can make a lot of money closing loans without worrying about which borrowers can really pay back? It is easy to get on a high horse and say everyone should do the right thing. Very few people would have the courage, character, and fortitude to turn down personal gains in the interest of something larger than themselves. In some ways, everyone of us is the cat. Are we willing to put the bell around ourselves?
I'm sure you can think of examples where status quo prevails regardless of intentions, because of the same basic question. Who is going to bell the cat?
Given the amount of tax payer money shelled out to pull the economy from the danger of a free fall, the logical thing may be for the Government to set up the rules. In fact, that's what any honest Government should do. Whether it is the Federal Reserve, Treasury Department or Congress that needs to act here, is there enough political will/courage to do this? I hope so.
1 comment:
makes sense now.
There seems to be a huge chasm between ideals and personal outlook, but it doesnt have to be that way.
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