Comments on: Is the Economic Bailout a Fraud Against The American People?

By: anonymous

anonymous — Mon, 06 Oct 2008 00:34:12 +0000

None of this addresses the phenomenon of “zombie debt” collection . . . the rise of publicly funded third party debt collectors who buy legally uncollectible debt and seek to to collect it. DON’T BELIEVE IT DOESN’T HAPPEN — 50-60% of my consumer debt defense work deals with “zombie debt collection.”

It accelerates the dive in national and state economies. It’s based on “gaming” the “adversarial” nature of our “legal system” to file collection suits and take a default judgment from people who fail to respond to a complaint or a lawsuit. Numbers on this phenomenon are not easily teased from the national statistics. The Wall Street “geniuses” have no idea what effect this phenomenon has on our economy. The same people who file lawsuits on uncollectible debt report the debt they acquire by “assignment” to the consumer credit bureaus, doubling and tripling the amount of debt a consumer actually has outstanding. I’ve heard that 50% of our credit reports contain bogus information; credit reports are the consumer “balance sheets” for determining “risk” for loaning money. About 75% of our economy is driven by “consumers.” IMHO, the abusive gaming of our legal system and the consumer credit reporting system lies at the heart of our economic problems and until enough people think to look at *this* “moral hazard” we won’t be finding our way out of this mess anytime soon . . .

In other words: EVEN IF YOU PAY YOUR DEBTS, EVEN IF YOU DISCHARGED THEM IN BANKRUPTCY, EVEN IF THE DEBT WASN’T YOURS (IDENTITY THEFT) OR REACHED A SETTLEMENT AGREEMENT, YOU CAN AND MAY BE SUED BY THESE REPREHENSIBLE PEOPLE . . .

By: Vel

Vel — Tue, 30 Sep 2008 03:25:31 +0000

Yes this is obviously the big mess. People of America are going to suffer for generations. Already USA is having 60% old people population and only 19% of young people are the youngsters. This will lead to more taxes and chaos economy.

By: Vel

Vel — Tue, 30 Sep 2008 03:22:51 +0000

I think it shows the America is purely a capitalism country. Only corporation will get profit and tax payers must be screwed. Government could have regulate the corporate business then screwing the innocent tax payers.

By: Zhu

Zhu — Fri, 26 Sep 2008 02:39:07 +0000

I think politicians are guilty, as well as the major financial institutions.

But let’s be honest, a lot of Americans spent too much or without thinking of the consequences and I can’t say I’m feeling sorry for them. Same… the current US President was elected twice. People’s choice…

I’m not bashing the US (eh, I hate the current French president whom I didn’t vote for) but let’s face it. There are issues and we all have some part in it.

By: Four Pillars

Four Pillars — Thu, 25 Sep 2008 23:35:47 +0000

Good post – “scam” is absolutely the correct word for this situation.

Mike

By: Patrick

Patrick — Thu, 25 Sep 2008 17:52:33 +0000

Francois, I don’t believe the government should make good for the bad practices of others, but it appears as though they plan on doing it anyway. Sometimes you have to fall before you can walk. I don’t think the government is willing to do that though.

By: Francois Viljoen

Francois Viljoen — Thu, 25 Sep 2008 14:56:27 +0000

I agree, why should the American government (read American tax-payers) make good for the unethical lending practices and greed of companies?

The economy will survive. Let consequences follow actions and root out the bad weeds.

By: Patrick

Patrick — Thu, 25 Sep 2008 11:49:06 +0000

Jarhead, I’m not a fan of bailing out corporate America either… Not sure what’s going to happen here though – this seems to be a big mess.

By the way, Visa, and MasterCard only facilitate transaction; they license their name and technology to member banks, which actually lend the money. I’m not sure how Discover does it… BUt, I get your point!

By: Jarhead

Jarhead — Thu, 25 Sep 2008 04:52:30 +0000

Lets bail out corporate America that is a good idea. Who is next the big three? While we are at it lets make Visa, MC, Discover, and all the other credit companies forgive all of our debt for our decisions.

Hell I figure if I keep spending money I don’t have or spend spend it irresponsibly I think Uncle Sam should give me some money.

Politics are what is prompting this. This would never go through in a nonelection year. This is the stupidist thing that the Government could do.

By: Miranda

Miranda — Wed, 24 Sep 2008 14:57:16 +0000

Great analysis of the current state of things! Unfortunately, I don’t think throwing money at the problem will help a great deal. What we need is a fundamental change in thinking and the way we as a country and society view money, wealth and debt.