May 23, 2011
I’m writing because my family and I were affected by the economic collapse of 2008, and we don’t want it to happen again. My daughter and son-in-law owe more than the house is worth. They are both working and are raising two children. They are just keeping their head above water.
Wall Street greed and outrageous pay practices were a major cause of the collapse. One way to change the incentives so they don’t collapse our economy again would be to delay the bonuses for several years, at least five or seven. That way, we’ll know if the loans they made in year one remain good. In the bad days, bankers paid themselves on the volume of loans (mortgages) they generated, not on their quality.
Will the banks ever show the humility to realize that they caused this crash and that they need to sacrifice for the common good and get rewarded when the economy improves?
Thank you for considering my comment,
Peter Cohen