Why Is Glenn Beck After The SEIU?
Lerner’s plan is to organize a mass, coordinated “strike” on mortgage, student loan, and local government debt payments–thus bringing the banks to the edge of insolvency and forcing them to renegotiate the terms of the loans. This destabilization and turmoil, Lerner hopes, will also crash the stock market, isolating the banking class and allowing for a transfer of power.
What’s wrong with this?
Look when you take out a mortgage, you sign a contract. The contract says you will pay $X for Y period of time or the bank has the right to come take the house back from you and sell it to someone else.
Ok, so what’s the problem? You decide to do the second – not pay.
Before someone pipes up and says “but that’s immoral!” let me point out that the Mortgage Bankers Association themselves did the same thing. They “jingle mailed” their headquarters building, which they bought and then dropped in value.
So maybe Beck can explain why there’s something wrong with the SEIU organizing people into a group to do exactly the same thing that the very trade association representing these bankers did?
I have long argued that the proper thing to do is make a decision on whether you should pay or intentionally default based on your personal circumstances, including the potential legal and financial repercussions.
I see no reason to change that recommendation, and that the SEIU is attempting to organize people into a block to do the same thing – make a business decision on whether to pay (or not) their loans – doesn’t seem to be any more troublesome than it was for the Mortgage Bankers Association.
Might this destabilize some banks? It certainly might. Is there anything wrong with that? Not from where I sit. The bank made the decision to loan the money knowing full well you might choose not to pay and if that happened they’d have to seize and resell the house. The simple fact of the matter is that you entered into a contract, and that contract contains an “or else” provision if you don’t pay. Choosing to have the “or else” happen is your right and if the bank didn’t like the odds on that they shouldn’t have made the loan in the first place. The consequence of the decision to lend you money – whether good or bad – is entirely theirs.
This is and should be a business decision, just like it was for the Mortgage Bankers Association.