Get ready for a big payout. The five largest mortgage lenders in the United States are exercising their hands to write checks and preparing to meet a payment of $ 25 billion required by the United States government. The full payment goes to homeowners who lost their homes to foreclosures during the world’s largest economic crisis since the Great Depression. The amount of money returned depends on the state, but appears to be about a thousand dollars. If anything, this payout seems to seem like just little more than a slap on the wrist for some of the richest organizations in the world.
“The bad boys”
The economic construction of the world is complex. It is a living company that includes world trade, goods, services and, above all, money. In economics, as in any living being, a primary factor is the great motivator: survival. Monetary survival starts riots, incites wars, sparks protests, ruins families, and rips them out of their homes. So what was the fundamental underlying factor behind the millions of foreclosures that took place over the last decade? Why did the “bad guys” of the big five major banks (Bank of America, Chase, Ally Financial, Citibank and Wells Fargo) illegally foreclose on so many homeowners?
Vulture loans: lions eat their young
The answer is … well, it’s complicated. Clarity on this issue has been further examined by high-powered defense attorneys working on behalf of our nation’s monetary Goliaths. Some economists have blamed the US government, claiming that the banks were heavily armed (can anyone pressure a bank in a capitalist society?) On predatory loan stocks, allowing countless adjustable-rate mortgages to overwhelm the market. This cancerous paper was traded around the world and then dramatically collapsed in the mid-2000s, sparking our current never-ending economic crisis.
Who succeeds?
Whether the government is to blame or not, financial fear (the need for banks to stay afloat once they found out they had untold amounts of loans that they knew would never be repaid) made the “Big Five ill “foreclosure, foreclosure. The government sued and the result is a payment of $ 25 billion. Did any of the Big Five suffer due to their illegal foreclosure? Not to do owners Who were illegally executed when recovering their houses? Not at all. What do they get for years of difficulty and pain? In many cases, around a measly thousand dollars. While much of the payment will go toward loan adjustments, etc., the end of the foreclosure fiasco does not appear to be even a celebratory victory, but rather a defeat.