It’s ironic and frustrating.
The American economy collapsed due to a hyped up housing
market based on faulty mortgage packing and reselling. The crisis rippled
throughout the world and its devastating effects continue.
Now, due in part to a federal program to encourage consumers
to buy homes, the housing market is picking up.
However, JPMorgan Chase and Wells Fargo, the nation’s
largest mortgage lenders, said they won’t make home loans much cheaper for
consumers, even as they reported booming profits from that business, according
to an article in The Washington Post.
The reason why mortgage bankers are making so much more
money is that the gap has widened between what banks charge a homeowner in
interest rates and what they must pay those who finance mortgage lending, the
article said. The mortgage-lending rate has dropped significantly, largely as a
result of the Federal Reserve action of spending $40 billion a month to
reduce mortgage rates to encourage Americans to buy homes.
American consumers continue to suffer from the financial
collapse of 2008. Millions of people lost their homes. A job loss has meant
that consumers who were able to own a home and provide for their families
became homeless.
I don’t know what these banks and the big corporations are
thinking. People need to have a job and a roof over their heads to be able to
be functioning, purchasing consumers.
By greedy gouging continually, big business is driving
consumers and their purchasing power into the ground.
You’d think these banks would be ashamed of their role in
the financial collapse and want to adopt better business practices to help
consumers and the economy recover and move American forward. However, it seems
as though all they want is more money for themselves.
How much money do rich people need? Aren’t seven homes
enough? Do you need a home with an elevator for your cars?
In addition to the collapse of the housing market due to
greed, we’ve seen the recent savings and loan, dot-com, energy, and stock
market crashes.
Unless big business adopts more ethical practices, we’re likely
to see more.
