I mean it undoes the entire point of shopping around and selecting a particular lender. The first time this happened to me was when I had to chose a bank for my student loans and then I was notified 3 months later that the debt was sold. Since then I’ve come to realize that this is standard practice.

Before you leap to the defense of financial institutions think about this: companies that originated home loans (with very poor standards of verification) then sold those loans to other companies so they didn’t have to be the ones waiting to collect the debt were what sent the economy into its latest collapse.

Really, think how odd it would be if consumers could sell their obligations to someone else (for .50 on the ) and then after buying hundreds of obligations and living high on the hog that person could go bankrupt taking out hundreds of debts with him.

My most important concern though is there is no point in shopping around for and making a contract with a particular lender, since they can sell it at anytime. I’m interested in hearing your thoughts, if I had the power I would limit this ability.
Dear Sir Jam, you are factually incorrect. First, this question has nothing to do with delinquent accounts, this says a lot more about you and your issues. Second, debts are sold frequently, in fact almost all home loans are originated by one lender and then resold instantly to another (note paragraph two). Some people are unaware how often their debts are sold because sometimes their payments are handled by a debt servicing company, the one that sends you those little payment books, but they can work for a series of lenders with your one debt. I find it worth while to talk philosophically about our financial system because we have law makers who can change it if enough people ask.

Technorati Tags: collapse, consumers, debts, delinquent accounts, economy, financial institutions, high on the hog, home loans, lenders, living high on the hog, paragraph, payment books, student loans

I am trying to rebuild my credit and restablish myself. I read online that there are a few financial institutions that dont check Chexsystems to open an account ..Does anyone know of any that I could look into..

Technorati Tags: financial institutions

Foreign aid policy of the United States is a program by which the United States of America interacts with other nations and set standards of interaction for its organizations, cooperations and citizens. The policy only spends a tiny portion of America’s annual budget (about 0.1% of the Gross National Product), but the United States still spends over billions of dollars the program. There have been arguments rising for the past few years about this policy. Some people feel that it is not enough and that we should spend a lot more helping other nations. Others criticize that we spend too much and that we should spend all money addressing problems our own problems. I think that we should spend all our money to solve our own problems before helping others.
The Great Recession is an economic decline began started after Lehman Brother’s bank declared bankrupt in December 2007. The financial crisis has also been linked to reckless lending practices by financial institutions encouraged by the government in the United States. It spread around the world and affected much of the industrialized world and has caused a significant problem in the economic world. The effect of this depression has caused deceleration in economic activity across the globe. The financial crisis has caused people in America to loose their jobs and the rate of people without jobs to increase around 10%. The situation in Europe was a lot worse, with Iceland declared bankrupt and Greece announcing that it’s going to sell land to return debt. The condition of Spain isn’t so good either, with the unemployed rate up the roof, a staggering 20%. United States is one of the world’s most important economic world leaders and it should spend more money trying to improve its economics before helping others. If America improves their economy, it’s going to affect worldwide.
During recent years, Public Colleges/Universities increased tuition to support the school due to shortage in funds. Increase in tuition has caused a problem in many of the poorer families since they couldn’t afford the school anymore. This would make those who can’t afford university lose the ability to compete with others and ultimately get eliminated. The result of this would cause the poverty to increase greatly, and for these people, they might rob/steal to try to survive in this world. The crime rates are going to rise and the society is going to be in chaos. To stop that from happening, the government of United States of America should stop spending billions of dollars to help others but to try to improve the student’s ability to afford tuition for school by offering more scholarship and/or support the public university/college.
Some people might argue that foreign aid is vital for helping countries with major catastrophes and creates a safer and prosperous world to those who need help. Major Catastrophes like Haiti Earthquake that happened in the past few years is one of the most serious natural disasters that happened in January 12, 2010 with a magnitude of 7.0. This disaster has been responsible for the death of over 230,000 people. Haiti is one of the poorest countries in the western hemisphere and the earthquake has completely destroyed Haiti’s ability to relieve victims of the disaster. Although America should preserve the funds of Foreign Aid Policy to solve the problems occurring within the country, the government should still send out resources and manpower to assist the survivors of the disaster. America should act as a leader for the rescue effort, coordinating rescue attempt between countries to make steady progress and avoid miscommunication or misunderstanding.
I think that the Foreign Aid Policy should be canceled since the United States of America should spend the money on their own problems first before assisting others. We have to help ourselves before assisting anyone else or our own country will be in serious trouble. America should spend the fund from Foreign Aid policy on helping improving the economic situation and decreasing the tuition needed to go to Public college/university. After solving the issue within the states, then the country should help others with their problems.

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Will the US collapse quickly just like the financial institutions did?
Who will the politicians blame, the rich for not paying enough taxes? If the government took all the money and assets of every american, they could not pay off our current liabilities.

Technorati Tags: assets, collapse, current liabilities, financial institutions, money, politicians

With the situation that is growing among financial institutions, how can one find out if our bank is going to be the next one to go bankrupt? What is a good website to rate the health of individual financial institutions? I’m very concerned not just of the saving and checking aspect of the banks (FDIC insured aspects) but also of the loan, investment and retirement aspects (2 of which may not be insured by any program).

It’s a huge hassle for most people to switch bank accounts especially when you have very diversified portfolios but if you can save yourself much heartache by knowing if your money MAY be at risk then everyone should have access to these tools/website.

Technorati Tags: bank accounts, banks, diversified portfolios, fdic, financial institutions, hassle, health, loan investment, money, retirement, risk

Excerpts:

This bailout was a terrible idea. Here’s why.

The current mess would never have occurred in the absence of ill-conceived federal policies. The federal government chartered Fannie Mae in 1938 and Freddie Mac in 1970; these two mortgage lending institutions are at the center of the crisis. The government implicitly promised these institutions that it would make good on their debts, so Fannie and Freddie took on huge amounts of excessive risk.

Worse, beginning in 1977 and even more in the 1990s and the early part of this century, Congress pushed mortgage lenders and Fannie/Freddie to expand subprime lending. The industry was happy to oblige, given the implicit promise of federal backing, and subprime lending soared.

This subprime lending was more than a minor relaxation of existing credit guidelines. This lending was a wholesale abandonment of reasonable lending practices in which borrowers with poor credit characteristics got mortgages they were ill-equipped to handle.

The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.

Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of businesses that remain profitable.

In contrast, a bailout transfers enormous wealth from taxpayers to those who knowingly engaged in risky subprime lending. Thus, the bailout encourages companies to take large, imprudent risks and count on getting bailed out by government. This "moral hazard" generates enormous distortions in an economy’s allocation of its financial resources.

http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview

Why is this not considered as being an option? Why must the taxpayers foot the bill for bad decision making?

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