As we are all aware, Bear Stearns collapsed recently and was acquired by JP Morgan with the assistance of the Fed. The Fed provided special financing of $30 billion dollars of our tax money to assist JP Morgan in the acquisition of Bear Stearns.
So what should be the terms of this special loan to JP Morgan?
As we are all aware, Bear Stearns collapsed recently and was acquired by JP Morgan with the assistance of the Fed. The Fed provided special financing of $30 billion dollars of our tax money to assist JP Morgan in the acquisition of Bear Stearns.
So what should be the terms of this special loan to JP Morgan?
An anonymous individual suggested the following terms, with slight modifications by me, while discussing the special financing on Robert Reich's website. I think the terms are both lenient and fair but I am open to further suggestions.
- All terms for this loan may be changed at anytime. Any changes may be applied retroactively without recourse.
- Any late payment will result in a large increase in the interest rate.
- Any late payment will increase the interest rate on all other debts not affiliated with this loan, even though they may be in good standing.
- Any change in your credit score will automatically increase your interest rate as we feel best fit our company profit goals.
- Any payment not received by the due date, regardless of any circumstances beyond your control, to include natural disasters, will increase your interest rate.
- Because of your bad credit history, we are only able to offer you a subprime loan with a current variable rate of 31%. But don't worry, we don't see those variable rates resetting upward anytime soon.
- All your credit information can and will be sold to all other credit card companies, credit reporting agencies and insurance companies as the small additional profit pays for our CEO's corporate jet. Besides we honestly feel that if you cannot pay for your loan, you should pay higher auto insurance premiums.
- We are not responsible for any errors that may have occurred on your credit report due to this loan. You have the right to dispute any errors, but keep it mind, we take forever to admit our mistakes. Besides we don't make errors.
- In the event that you cannot pay for this loan and we must start foreclosure proceedings on your assests, don't even think about working it out with us.
- Occasionaly, you may see added fees on your monthly statement without clear explanations. Our CEO's are the upper crust of societies elite, and we feel they deserve millions, if not billions, in salaries and bonuses. They are masterminds when it comes to using your money. So don't even consider asking us about a few silly fees.
Sounds fair to me.