Monday, March 23, 2009

Being a Borrower

"The rich rules over the poor, and the borrower is servant to the lender."

--Proverbs 22:7

Considering this scripture, I wonder where the borrower will now find itself. Wall Street banks have borrowed from the masses, many the working poor and those others in the middle who are increasingly becoming the working poor. But the only difference here is that the rich still rule as seen in the trillions given to the borrowers that targeted sub-prime loans.

Will these Wall Street banks now serve the poor? They are the borrower. Credit default swaps and sub-prime loans, whether given by Wall Street banks or Fannie Mae and Freddie Mac, were not serving the working poor. They were lining their pockets with billions in fees and now billions of taxpayer money, maintaining the rich and suppressing the poor.

This global financial crisis seems like a designed perfect storm for the rich to become richer and the poor to become poorer. Who is the poor? If you're not in the league of these Wall Street and AIG executives, relatively speaking, YOU'RE poor. You're being ruled over.

4 comments:

- A - C - said...

sadly true Judith. the world is upside down... and yes, we are all poorer.

William Yatscoff said...

Agreed, It is sadly true. Always hope things will get better, but capitalism has tended to widen the disparity instead of shrink it. In the search for bigger profits and employees were lost along the way.

judith ellis said...

AC - I've been rather upset today with Treasury printing ONE TRILLION DOLLARS of which $500 BILLION TO ONE TRILLION to go to Wall Street banks and tunnelled through firms like AIG to European investors, Barclays and the like. They have already received nearly a TRILLION DOLLARS.

As much as I wanted to believe the President it feels like more of the same to me. What could we expect really with the likes of Geithner and Summers? I was very disappointed that the President said that Geithner was doing an "outstanding" job.

Buying bad debt that has no known value is outstanding? I believe we will turn around, for sure, but I also fear that we will not have reform on Wall Street or in Washington. We will most certainly be here again with these Wall Street banks and the likes of AIG that will remain too big to fail, having already profited from billions of fees beforehand.

judith ellis said...

William - Capitialism has done well to bring a great many countries out of poverty and created wealth among many the likes that we have not seen before. It is not capitalism itself. It is the "LOVE of money that is the root of all evil." But money itself is NOT bad it is what we do with it and how it is used. Capitalism needs regulations.