In the latest information to come out of the business world that will never benefit the common person, Allstate has sued the banking giant JPMorgan Chase for fraud (knowingly selling a poor-quality product in this case).
So…the insurance companies and investors who all got on the bandwagon of the false mortgage boom are a little upset now. I can’t say that I sympathize with them. I suppose they were left out in the cold when it came to any bailout, but so were the American people.
It all really comes down to a couple of points.
- Yes, the average Joe did sign those papers which ended up overextending themselves causing the mass foreclosure crisis. To understand this better, you have to realize that in many cases the average Joe saw an opportunity to collect on money that their property was supposedly valued at and to do this all they had to do was swallow a higher monthly payment. Now, the average Joe is not an economic whiz (including myself) to be able to predict that their property was not really valued that high, so they figure it’s a good deal to swallow. Now they can finally pay off some bills…now they can finally have their 25-year-old air conditioning unit replaced. Perhaps, you should check out the average salary of employees of these mortgage securities firms.
- It is the opinion of most people that the mortgage companies were out for the fast buck and they not only made millions, but also got bailed out for their troubles. They successfully worked both sides of the crash. If they were implementing the same loan standards as just a few years before, none of this would have happened. Think about that for a second, if they would have disallowed all of those loans just as they would have a few years before, the crash would not have happened.
So here goes…
- Sell False loans/ Make a huge profit
- Blame the crisis on the average American for being a dolt
- Get bailed out/ The average Americans are losing their homes
- Get sued by a laundry list of Insurance and investment firms
- The average Americans are still losing their homes
- Where is the government in all of this again? Right…thought so.
- Perhaps, JPMorgan Chase will have to settle with Allstate/ that’s not even bittersweet…in fact, who cares?
Let’s make one thing clear…these companies are keeping that money made and unless the American people speak up about it…that is exactly where it will stay.
—- Erik Sudberg