How to screw poor people?
To learn that get hold of someone at Merrill Lynch (there are so many other financial institutions that developed expertise in this reprehensible practice, but I am just mentioning these guys here). Even a high school kid knows that businesses go through cycles and if something keeps going up defying the laws of gravity, it will eventually go down. It is understandable why some clueless consumers took out exotic mortgages believing that that home values will simply keep going up forever, when banks were doing this, they were neither naive nor ignorant. They were pursuing a deliberate strategy to screw vulnerable people to improve their bottom line. Sub-prime mortgage customers typically paid higher interest rates and closing costs, and since the banks knew all along that they were more likely to fall behind in their payments, they were also expected to pay even more in fees and penalties. The banks bet that when foreclosures happened they will simply sell the house at a profit. I am so glad that that these greedy decision-makers have been proven wrong. I hope others can understand that good companies are built not by screwing your customers but by creating customer delight.
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