Subject: Re: Increased Screwing of Working Class by Banks
The OP is correct to point out that the financial sector benefits from the hardships of working people. Not to worry though, the foreclosures and defaults of working people will hit the banks soon enough

Am perhaps incorrectly perceiving an adversarial stance towards banks, and honestly am perplexed by it. Perhaps you can educate me on where I have it wrong.

Debt is a tool that should only be used with understanding. It can be a timesaver and presents opportunities, but comes with risks. Although the government likes to buy our votes with free money, it is not actually an entitlement, and one that a for profit entity would have no right to provide. The risk in debt falls on both the receiver and the issuer. Consequences in miscalculation of risk has consequences on both parties. Am just as against bank bailouts as I am against forgiving consumer debt, but I don't take glee in either happening.

When I was that very poor 19 year old, I used debt to get groceries when my paychecks had yet to hit my account. Not talking a splurge here, as my groceries revolved around materials to make soup, so a turkey leg, bag of onions, potatoes, carrots, celery...all things that were crazy cheap at the time and other than the turkey leg, lasted more than a week. Budget was $5/week. I had overdraft protection on my checking, which admittedly I did not understand fully. Though no bounced check fee, was stunned at the interest charge the first time it happened. (Remember that this was the day of 18% mortgages, and unsecured loans were substantially higher.) Learning my lesson, it only happened once. I have never carried a balance on my credit card. When money is in such short supply, it is idiocy to spend it on interest without extreme need. However, I appreciated having that credit available to me. It was my emergency fund before I had even heard the term. What it was not was extra income to spend.

Debt can be incredibly freeing, or it can be a millstone around your neck as you head into deep water. It's not the tool itself that is the problem, but how it is understood and used.

IP