tag:blogger.com,1999:blog-20947909.post1133846767264308628..comments2023-08-01T08:52:18.288-06:00Comments on Random Meanderings and Other Meaningless Blather: One further economic thought:That One Guyhttp://www.blogger.com/profile/02733838946095632239noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-20947909.post-6391207259119230442009-02-05T11:25:00.000-07:002009-02-05T11:25:00.000-07:00Absolutely, the interests of shareholders and cust...Absolutely, the interests of shareholders and customers should align. And I think that, by and large, it did before everything got out of hand - at least in the finance industry.<BR/><BR/>I think it would be easy for a bank to protect its interests in doing loan modifications by simply implementing a set of strict guidelines that must be met in order to qualify for a loan mod.<BR/><BR/>I frankly That One Guyhttps://www.blogger.com/profile/02733838946095632239noreply@blogger.comtag:blogger.com,1999:blog-20947909.post-21607651621196478172009-02-05T11:09:00.000-07:002009-02-05T11:09:00.000-07:00I see you've noticed I'm exposing my particular ma...I see you've noticed I'm exposing my particular management biases. Namely that in the long run, an interest in profits and shareholders should, in most instances, mean an interest in the welfare of customers.<BR/><BR/>I can understand a bank's reticence to publicize mortgage principle reductions--they'd potentially lose revenue from people who are willing to pay higher amounts. ... so maybe moreTomhttps://www.blogger.com/profile/04486513311176687085noreply@blogger.comtag:blogger.com,1999:blog-20947909.post-11144514872120106292009-02-05T10:59:00.000-07:002009-02-05T10:59:00.000-07:00Tom, you're absolutely right - why WOULDN'T a cust...Tom, you're absolutely right - why WOULDN'T a customer-serving bank explore this option....?<BR/><BR/>The answer becomes more obvious every day: it's because they AREN'T customer-serving banks, they're SHAREHOLDER- AND SELF-SERVING banks.<BR/><BR/>Banks have asked for, and taken, bailout money from the tax-payers (their customers), and instead of implementing responsible policies to serve their That One Guyhttps://www.blogger.com/profile/02733838946095632239noreply@blogger.comtag:blogger.com,1999:blog-20947909.post-12165990539690801192009-02-05T10:46:00.000-07:002009-02-05T10:46:00.000-07:00You're still faced with the trouble that upside-do...You're still faced with the trouble that upside-down lenders may (and do) threaten to walk out on their mortgage if the bank doesn't reduce the principle.<BR/><BR/>Why wouldn't a customer-serving bank not explore this option (so long as it's doing write-downs). Why couldn't banks employ the 40+ year mortgage option you suggest on their own, without federal intervention? (Never mind the Tomhttps://www.blogger.com/profile/04486513311176687085noreply@blogger.com