Of mice and actuaries

Interesting how the banks, who, without a doubt, created the international debt crisis, react to it.
Times are tough. For people losing their jobs, people still trying to stay afloat after the banks quite eagerly inflated their property values and were willing to grant nice liquid loans against the new values.
And now, the customer, Joe Blow, is bearing the brunt of it. The banks are being baled out and Joe is being drowned.
I recently defaulted on the loan payments on my one business property.
What was the bank's reaction to this?
Well, obviously, increase the interest to prime plus 9%!
The logic had been checked by the team of actuaries - if the customer battles with paying prime, he should be fine with prime plus nine, or put differently: Double Prime!
It's prime time, guys, they slap each other's backs on the way to a well deserved drink after work.
And obviously, they will be getting their bonuses this year.
All paid by Joe, off course.
Interesting how the bank treat people in down times, not caring if they take their custom elsewhere, because the other banks treat their customers the same way.
Time for a new banking model?
- Jonah