So screw those who got screwed! That’s the old blame-the-homeowners chestnut modified to acknowledge the preyed-upon but put them down the list of priorities—as if they were on top anyway.
All this twisted logic begets a twisted conclusion:
Rather than stop lenders from hurting consumers, the first priority should be to keep the banks from harming themselves.
No, that’s wrong, and it’s captured thinking. The point of a banking system in an economy is to serve consumers, not to serve itself profits. They’ve knifed consumers with near-impunity for too long. Suggesting that the stability of the financial system should be prioritized over protecting consumers is wrong—and a false choice.
What a mess.