Almost everyone admits that the banking industry displayed bad business practices by approving almost anyone for a mortgage. That was some incredibly bad business decisions. It was also wrong to take advantage of customers with sub-prime mortgages. I understand the homeowners are to blame too. There’s certainly no lack of blame to go around.

I’m not so sure I trust the government enough to just accept that the best way to fix this crises is to throw near a Trillion dollars at it. I’m not a financial expert but if I had my way I would have one simple requirement for every bank that needed taxpayer’s money. If it was my call I would insist that before a bank was paid a single cent for their bad debt they would have to fire the managers. Yes, Fire – not ask for resignation with bonuses and pension. Fire those idiots and send them to the unemployment line empty handed. Every single manager from the CEO to bank managers must go before they receive any help from the government.

I’d like to add a slightly different perspective when looking at just how stupid these banks have been. Let me quickly use a family member to demonstrate at the true stupidity of big banking business. One of the three close family members of mine that lost their homes lived in a very influential neighborhood in the third richest county in the United States. That’s Oakland county in Michigan. His home was valued at $320,000. Very modest for the neighborhood. He owed $280,000 with a very bad financing agreement that included increasing interest on an already too high interest rate. In all the mortgage company’s wisdom they refused to work with the homeowner. Rather than refinance at a reasonable rate the bank foreclosed and forced yet another family out of their home. Now let’s look at this business decision…

They had someone willing to pay $280,000. They refused to work with the homeowner due to policy so they took possession of the home. For the next year they pay the taxes and upkeep on another house that won’t sell. Desperate now, the bank lowered the selling price to $119,000! After expenses the bank will be lucky to recover $80,000 of the $280,000. But they showed the customer. Yep, they stuck to their policy and took a $200,000 loss. Wow, that’s great business. That’s just one example that I personally know of. It’s amazing that these idiots can look at themselves in the mirror. They’ve run their businesses into the ground by pure greed and stupid policy.

Go ahead and bail them out. I guess the world economy depends on it. Just, pleeeese, make these idiots pay with their jobs. It looks like the taxpayer will get nothing for their money. At least give them the satisfaction of knowing the idiots that caused this mess are unemployed. How ironic would it be if some of those executives lost their homes after all those lives they ruined. Oh, look, now I’m getting greedy

If we have to bail out the bank’s bad business decisions then let’s throw out the bank leaders. I call for immediate dismissal of every CEO down to every bank manager. Free up those jobs for someone with common sense.

“A drowning man is not troubled by rain.”  – Persian Proverb

Photo Credit: Colin Brown