CNS News today examines how the "drive by media" (which usually doesn't look any deeper than the appealing sound bite) in the subprime lending "crisis" ignores personal responsibility in favor of (once again) bashing business:
Major news outlets are largely ignoring personal responsibility in their coverage of a recent increase in loan foreclosures, according a new report from the Business & Media Institute (BMI).
"Everyone who enters into any kind of financial agreement should be expected to read and understand the documents he or she is signing, and if they don't, they shouldn't sign the papers," the report stated. "This was clearly not the position the evening news programs took."
According to the foreclosure tracking organization RealtyTrac, almost 450,000 properties were in various stages of foreclosure in the third quarter of 2007, nearly double the number in the third quarter of 2006. Properties in foreclosure represent just over one-half of 1 percent of U.S. households.
As Cybercast News Service has reported, the subprime lending "crisis" has been a major focus of national elected officials, and Congress and President Bush have clashed over the best way for the government to be involved in trying to help borrowers.
I think the best way for government to help borrowers is to instill and expect personal responsibility. Unfortunately, the liberal wing of our government (including both Democrats and some Republicans) are doing just the opposite: making excuses for every personal failure, and working to make people more dependent.
I worked in the subprime lending market for five years as a collector and a collection manager. I can attest that the figures cited in Star Parker's recent column are accurate: about 80% of customers pay on time, another 10% pay before the loan is 30 days late, and less than 5% move beyond 30-day late status and into more serious credit and legal territory. So it's not the "crisis" the liberals and the "mainstream" media (oh, sorry, one and the same) want you to think it is.
I also recall from countless collection calls as to why many people were delinquent on their loan payment. Certainly there are those who get behind because of a major illness or an unexpected job layoff after many years of reliable employment.
But most of the delinquencies I dealt with were of this variety:
Collector: Why is your payment late?
Customer: Well, I'm still getting used to that new $400 truck payment.
Or this:
Collector: same question.
Customer: Well, I've been laid off about a year now [and no one has busted down my door begging for me to take a job from them].
Or this:
Collector: same question.
Customer: Don't worry about it; you'll get it.
Collector: When can you pay?
Customer: I don't know, but you'll get it.
Collector: When?
Customer: It ain't none of your business! [Click!]
The vast majority of delinquent customers I dealt with as a collector and a manager were delinquent because of financial irresponsibility. They bought expensive cars, motorcycles, jet-skis, cell phones, pagers, big screen TVs, and every other thing you could imagine, other than placing their loan payment as the first priority.
Many also had a lackadaisical attitude about their employment, not appearing very concerned if they were unemployed for long stretches at a time, whether that be out of a job completely or laid off or "seasonal" work that they knew would leave them unemployed during the same "season" every year.
Most loan companies will work with someone who has a genuine problem. The loan company doesn't exist to repossess items or close accounts--neither are good for business for a number of reasons.
But when our society--starting with government--creates a sense of entitlement, creates a sense of victimhood, creates a sense of envy and hatred of business, you end up convincing a certain segment of the public that it pays to be irresponsible.
And in our misguided society, too often it does.
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