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Originally Posted by David70
So BMW has the car and a person comes in and buys the car with a loan. BMW decided the risk that they wouldn't get paid back was small enough to give them the loan. The customer decided they could afford the loan.
Then the government decided that both BMW and the customer were wrong, the loan was too much for the customer and BMW owes the customer more money. 
Glad to see this wasn't in the U.S. I am for personal responsibility and making my own financial decisions and don't need the government to tell me or BMW what I can afford. If someone wants to live in their mom's basement and drive an M3 the government tells BMW not to allow it because the government decided they don't make enough money? |
Well, that's why the US was at the origin of the GFC with the subprime loans and Australia was the only major economy to have avoided going into recession because of it. The idea of unregulated pure capitalism may have made lots of rich people but at the same time made millions of people poor... Not all government decisions are bad and you have missed the point here. the point is BMW finance approved loans to people who should have been rejected because they were too risky. laws in Australia are made that way to avoid the financial system going down because of such practices. in fact there actually are calls to have investigations into banks doing such practices right now. Nothing wrong with it for the interest of the taxpayers who always have to pay for the bill when things go wrong in a large scale. Exactly what happened in the US with all the borrowing and bailouts ahfter the GFC... One of the reasons the US is in so much debt and Australia not.