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08/03/18
10:42
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Originally posted by UniversalTrader
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Yes I agree many people are gamblers - there is nothing wrong with calculated risks but many have no idea. Back to the original point though at the end of the day it is about responsibility of each of the parties involved.
- You borrow money - you need to know you can afford to meet your obligations. Doesn't matter how you got your loan, it is your responsibility and it is NOT anyone else's fault.
- Brokers inflated the borrowers capacity to meet the payments - fine and jail them
- Banks - need to do their own due diligence to feel comfortable that borrowers can meet their obligations if not they are likely to lose money.
Additionally brokers and lending personnel within banks need to be individually responsible along with the organisation about doing the right thing with lending. As an engineer both the organisation and the people who contributed to a product are potentially liable for deaths/injuries from defective products, but if you do the right things i.e. adequately assess the risks and follow good company processes as an individual you will generally be okay liability wise - probably need a similar thing for lending personnel so they continue to remain responsible for all loans they are part of that way they just don't get their bonuses etc and run later leaving a mess/responsibility for others.
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In a perfect world where everyone abides by the rules, it works fine. But capitalism produces inequality, people needs differs. The current system has many moral hazards.