Today I lost all trust in the Christian Science Monitor, after the published the article Debt defaults as moral fault. This was the biggest load of pro bank propaganda i have ever seen in my entire life, and Yahoo correctly put it in the opinion section of their new site because it is completely bogus and non-factual.
Points from their article and my arguments below:
Point 1 – Back in the day of Charles Dickens, anyone not paying a debt could be arrested as a moral menace to society. While debtors’ prisons aren’t coming back, it is worth recalling such Victorian virtue in light of three debt crises:
Argument 1 – Also back in this day corporations or at least their owners were held to the same moral standard as the public. The debt that America is in can rest solely on the shoulders of the big banks and our corrupt government. If anyone should be going to jail is should be Ben Bernanke and the CEO’s of Citi, JP Morgan, Well Fargo, Goldmen Sac, Bank Of America, etc.
P2 – If the world isn’t careful, a certain ethical callousness may set in soon about the ease of breaking one’s word, as well as ignoring the ricochet effects on others.
A2 – We are already way past the days of contracts meaning anything. Major corporations have been taking advantage of the public’s trust in contracts for years through bankruptcy and courts of law. Why should the common man sit back and get screwed because he is trying to support some dead form of ethics while major corporation bury him/her in debt.
P3 – Just look at American neighborhoods where those with “underwater” mortgages simply pack up and leave. The value of nearby houses deteriorates and banks have less money to lend. If enough people default, the housing market will worsen even more, causing more government red ink and slowing the economy.
A3 – If the neighbors were smart they would walk away from their homes too. Don’t let the bank guilt you into not leaving your house. They made the bad investment by loaning that much money against an asset that has not held its worth not you. You were just looking for a place to raise your family. Definitely don’t be looking out for the USA Government or your Bank they have not been looking out for you for years now, so why should you extend them the same courtesy.
P4- Breaking contracts should not be done lightly. There’s a reason certain financial instruments of debt are called bonds; they are what bind individuals to a joint enterprise.
A4 – If there was any kind of BOND between major corporations and the public they would have told you this was a bad idea from the start. They care only about themselves and their profits and so should you. Don’t feel guilty about walking away from a home, if you house is upside it is most likely the best move for you and your family. Yes this could cause the housing market to drop further, but it will also lead to a real correction in the market and hopefully better banking and policy practices in the future.