I’m sitting watching the news that the US government is planning to bail out the banks in their country to the tune of $700 Billion.
Over the past two years as I’ve worked to pay off my debts and tried to educate myself about financial practices I’ve developed the general idea that credit is a bad thing. Carrying lots of debt is a very bad thing. Is anything going to change in the economic systems if banks don’t learn this too?
When you borrow from a bank and can’t pay it back you lose everything, there isn’t a superhero down at the bank who’s going to turn around and buy everything back off you to forgive your debt. Maybe instead of bailing out the banks the governments of the world should be focusing on outlawing the practices that caused the problems in the first place.
I’m not articulating it very well, I just don’t see what’s going to change if instead of learning a lesson banks get handed a nice little wad of cash. High level economic policy seems to fly in the face off all good economic advice for individuals.