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concerned mom posted:Think about it like this. When the banks failed in 2007 was the mortgage crisis the sole fault of the people with mortgages? No, the lenders had to shoulder much of the guilt because they made irresponsible lends. Germany and France made irresponsible lends. Therefore it's only fair that Germany and France get the same justice that the bankers got. It's one thing to acknowledge that individuals may not behave rationally when dealing with loans and that it was in part the banks fault for giving loans to people they should have realized would have no ability to pay it back. But we're talking about an entire government here, I would expect the government to show better fiscal responsibility than random uneducated people who want a house and don't understand what an arm is.
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Jul 16, 2015 17:43
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| # ¿ Apr 27, 2024 14:33 |
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I haven't really followed the situation too closely but I don't really understand why people on SA largely seem to think predatory lending was the issue here. Could someone break it down for me?
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Jul 16, 2015 17:49
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Nuclearmonkee posted:It was dumb loans being lent by bankers on one side while the greeks lied and cooked the books on the other. So like germany was loaning money directly to random private citizens or were they loaning money to the government itself? What hypothetically would have happened if they just didn't loan the money at all?
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Jul 16, 2015 17:59
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Nuclearmonkee posted:The banks made the loans originally to the Greek government, but due to these bailouts the debt has been effectively transferred from banks to the European governments who bailed them out. If they weren't loaned the money the charade that the Greek economy was would have become obvious but generally you can always find somebody to lend you money if you are a government. How is it not just greece that is at fault then? like with the mortgage crisis I can understand how you'd blame the banks for being predatory, they were well aware that many people would not fully understand the terms of the loan or be able to actually pay it. But we're talking about interacting with a government here, shouldn't you reasonably expect a government to handle loans responsibly? If they actively cooked their books to get more money then yeah I don't see a problem with the governments going to bat for their banks who were essentially defrauded.
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Jul 16, 2015 18:06
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In this case though didn't they essentially defraud the banks by cooking their books though? Like i understand that banks should eat the loss from bad loans that they understand were risky when they made them but if the people the banks loaned money to provided false information to get more money then it's more reasonable for the gov to step in and help em out.
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Jul 16, 2015 19:14
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Nuclearmonkee posted:Unless I am wrong which is quite possible I think Goldman Sachs (who Greece hired) manipulated the books using legal methods.
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Jul 16, 2015 19:23
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| # ¿ Apr 27, 2024 14:33 |
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if the debt were hypothetically forgiven and greece were left alone how long would it be before they were back in the exact same spot? What were the loans being used for in the first place and has that need gone away?
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Jul 17, 2015 20:03
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