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Bankruptcy shoe is on other foot now

Thomas Johnson, Aurora

Published October 6, 2008 at 6 p.m.

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As the current financial crisis and the subsequent bailout that is being pieced together by the federal government plays out, I couldn’t help but recall the that only a few short years ago the banks and other financial institutions led a successful effort to change the bankruptcy laws, particularly those laws that related to personal bankruptcy.

At the time, the banks and their allies in this effort argued that individuals should not be encouraged to act irresponsibly, and not assume mountains a debt that they cannot repay. The effort was successful and the bankruptcy laws were tightened, not even making allowances for a catastrophic illness.

It now seems that some banks and other financial institutions have done exactly the thing that they were so critical of individuals for doing and now find themselves in crisis. They have acted irresponsibly and assumed a large amount of bad debt- much of which appears to be in bad mortgages. They have assumed the traits of those that they were critical of and managed to pay their top management exorbitant amounts in the process.

I am not an attorney, nor have I ever declared bankruptcy, but the irony of the current situation is not lost on me. It should not be lost on our leaders as they seek to craft a solution to this fiasco that was brought about in no small part by an avaricious few with poor management abilities and no moral compass.

Comments

  • October 6, 2008

    8:20 p.m.

    Suggest removal

    BetterEducated writes:

    Touche!

  • October 6, 2008

    8:32 p.m.

    Suggest removal

    grandpaw writes:

    Excellent insight from Thomas Johnson.

  • October 6, 2008

    8:34 p.m.

    Suggest removal

    Sweetpickle writes:

    I don't think you can look to our leaders to help the taxpayers, they want to work for those same companies when they leave office.

  • October 6, 2008

    9:48 p.m.

    Suggest removal

    rpmcmurphy writes:

    There is at least 1 leader you can look to.
    Ron Paul.

  • October 7, 2008

    3:45 p.m.

    Suggest removal

    anderson writes:

    Well said, Mr. Johnson.

    This says something about how laws are made in this country, and who has influence in making them.

  • October 7, 2008

    3:50 p.m.

    Suggest removal

    anderson writes:

    I don't know where Ron Paul would lead us. He voted with the credit card cos. on the bankruptcy bill.

    http://www.votesmart.org/issue_keyvot...