BP#10 The Echoing Effects of 2008 Still Being Felt in Florida

As it is commonly know in 2008 predatory loans  were at the center of a financial meltdown so large it brought the US economy to it’s knees and many other countries with it. Florida today is looking to sue the banks responsible for the subprime mortgages because “You have to have discriminatory loans,” and “Those discriminatory loans have to lead to defaults. The defaults have to lead to foreclosures. The foreclosures need to lead to increases in vacancies. The increase in vacancies needs to lead to reduction in property values.” Long story short Miami is looking to sue the banks under the fair housing act for retribution surrounding the loss of property value.

It isn’t a question that what the banks did was appalling. Making exceptions for themselves, the banks targeted people who they knew couldn’t pay back there loans in order to repossess the homes and sell them again and repeat the process. But does Miami have the right to sue?   If the Supreme court decides to allow it it will create a chain reaction of similar cites looking to the same thing. If universalized and every city that had a bank that practiced in subprime lending would be suing the banks. If ever city was suing the banks the banks would be forced to shut down and potentially lose a lot of customer money. If the banks shut down the FDIC will be forced to compensate people who had their money in the banks and many people will loose money they cannot get back. Allowing Miami to sue the banks for effects they are feeling second hand goes against Kant’s principle of universality and cannot be deemed to be ethical. More than that it would affect more people negatively and have a less than optimific  outcome.

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