The Elimination of the Consequences of Bad Behavior Continues

From today's Wall Street Journal:

Citigroup Inc. announced Tuesday a new program aimed at addressing the latest challenge facing the mortgage industry: unemployed homeowners.

Under the program, Citigroup (C) will temporarily lower mortgage payments to an average of $500 a month for certain borrowers who have recently lost their jobs and are at least 60 days behind on their mortgage payments. Borrowers will be allowed to make the lower payments for three months. Citigroup will waive interest and penalties during this period.

In January, the New York bank bucked the rest of the industry and endorsed legislation that would allow bankruptcy-court judges to modify the terms of troubled mortgages. Citigroup executives have said that move, which could take a toll on the company's bottom line, was designed to win favor in Washington.

...Mr. Das said the federal government "had no role at all" in the company's latest loan-modification effort. The new program "was created by us, developed by us and is now being implemented by us," he said. "There was no pressure at all."

It sometimes appears like we're moving towards a society where the costs associated with taking risks are slowly being eliminated. That means that eventually, so will the benefits.

And somehow I doubt there was "no pressure at all." That could be my inner Conspiracy Theorist (he lives in my head next to the little Game Theorist) talking, but the timing seems (as Artie Johnson would say, "Verrrrrryy Innntereshting"

Ironically, the article was in the "politics" section.

Comments

[J. D. Swampfox:]

"It sometimes appears like we're moving towards a society where the costs associated with taking risks are slowly being eliminated.That means that eventually, so will the benefits." Yup, if the cost of failure is shared by all, then the benefit is shared by all. But... the consensus of all is rarely to take risk, because all don't want to pay the cost of failure- hence "the collective" gives up the potential for gain from risk taking. Result? ...mediocrity, at best.

Mar 03 11:41 AM

[User 368777:]

It seems everyone is all over any effort to soften the economic indigestion we have. The greed of the last decade has not just eaten the whole cake but the ingredients too.

To all of the Bushite, anti-social program Jim Cramers & Rush Limbaugh's of the world give your greedy selves a rest!

All that Money didn't buy happiness but losing it is bringing out our greedy worst...........instea... find the silver linings of recovery

Mar 03 01:39 PM

[ResourceWise:]

Actually the bad behaviour was when individuals in banks took massive risks with the bank’s money so that they could get massive bonuses. These ‘masters of the universe’ – even if they lost their jobs as a result of their egregious actions are enjoying the fruits of their pillage.

On the other hand if a bank recognizes the difficulty their customer is in – due to losing his job, and makes some adjustment to try and keep the mortgage going, that is just common business sense.

Mar 04 08:42 AM

[gotnochips:]

Washington, DC (AP)
President Barack Obama and the democrat controlled Congress are considering sweeping legislation that will provide new benefits for many Americans: The Americans With No Abilities Act. AWNAA is being hailed as a major legislative goal by advocates of the millions of Americans who lack any real skills or ambition.

"Roughly 50 percent of Americans do not possess the competence and drive necessary to carve out a meaningful role for themselves in society," said California Senator Barbara Boxer. "We can no longer stand by and allow People of Inability to be ridiculed and passed over. With this legislation, employers will no longer be able to grant special favors to a small group of workers, simply because they have some idea of what they are doing."

In a Capitol Hill press conference, House Majority Leader Nancy Pelosi and Senate Majority Leader Harry Reid pointed to the success of the U.S. Postal Service, which has a long-standing policy of providing opportunity without regard to performance. Approximately 74 percent of postal employees lack any job skills, making this agency the single largest U.S. employer of Persons of Inability.

Private-sector industries with good records of non-discrimination against the Inept include retail sales (72%), the airline industry (68%), and home improvement 'warehouse' stores (65%). At the state government level, the Department of Motor Vehicles also has an excellent record of hiring Persons of Inability (63%).

Under The Americans With No Abilities Act, more than 25 million "middleman" positions will be created, with important-sounding titles but little real responsibility, thus providing an illusory sense of purpose and performance.

Mandatory non-performance-based raises and promotions will be given so as to guarantee upward mobility for even the most unremarkable employees.

The legislation provides substantial tax breaks to corporations that promote a significant number of Persons of Inability into middle-management positions, and gives a tax credit to small and medium-sized businesses that agree to hire one clueless worker for every two talented hires.

Finally, the AWNAA contains tough new measures to make it more difficult to discriminate against the non-abled, banning, for example, discriminatory interview questions such as, 'Do you have any skills or experience that relate to this job?'

"As a Non-abled person, I can't be expected to keep up with people who have something going for them," said Mary Lou Gertz, who lost her position as a lug-nut twister at the GM plant in Flint, Michigan, due to her inability to remember "rightey tightey ,lefty loosey".

"This new law should be real good for people like me," Gertz added. With the passage of this bill, Gertz and millions of other untalented citizens will finally see a light at the end of the tunnel.

Said Senator Dick Durbin (D-IL): "As a Senator with no abilities, I believe the same privileges that elected officials enjoy ought to be extended to every American with no abilities. It is our duty as lawmakers to provide each and every American citizen, regardless of his or her inadequacy, with some sort of space to take up in this great nation and a good salary for doing so."

Mar 04 10:18 AM

[notsosmart:]

the dumb-dumbs union will become the biggest most powerful yet.with a 50% high school dropout rate & a 50% 1st year college failure rate our "product" will be ????.

Mar 04 03:44 PM