Groups similar to Occupy Wall Street have sprouted up in cities across the country like crab grass in August. Now into their second month of protests, these young Americans are objecting to bank bailouts, foreclosures, millionaires, and even capitalism.
Unfortunately for their cause, when one of them was asked a direct question by a major New York news station as to what we would replace capitalism with all you heard were crickets.
I understand somewhat why they are so upset. The Bureau of Labor Statistics has recently reported that those in their late 20s have some the highest unemployment rates during this economic downturn. Many are also saddled with huge college debt and for many they are realizing that the world is a tough place.
However, their anger is misplaced. Wall Street, the bankers and our system of capitalism did not cause this current economic crisis. Perhaps they should turn their anger on those irresponsible elected officials who supported the economic blunders such as the ever growing housing fiasco, bail outs and loans to chosen industries.
Capitalism is the system which has made this country the envy of the world and enables these protestors to tweet, text, and post You-tube videos. It is a system that rewards success and sorts out failures. The current problems we face arose when elected officials decided that they were smarter.
As a mortgage banker, I realize these protesters are my future. They are the ones who will be buying the homes that I finance. The housing industry needs them to be employed and earning to purchase the homes from downsizing baby boomers.
This generation is far smarter then I ever was at their age.
However, my industry needs to do a better job at explaining the benefits of home ownership and educating them about how banks add value in a community.
I often conduct home-buyer seminars and volunteer to speak in schools about mortgage lending. I enjoy explaining how a mortgage is basically a contract between a lender and a borrower and both parties are obligated to live up to their end. I then ask everyone to imagine lending thousands of dollars to someone you know only on paper, for the next 30 years
These protests are a wake-up call for all of us in the banking industry that we need to be more aggressive in getting our message out on how we make lives better. We need to support elected officials who understand job creation. We need to work to clear up the foreclosure mess and explain that mortgage principal reductions will only hurt every homeowner present and future. Above all, we cannot surrender the message to the fringe crowd with an anti-capitalistic agenda.
Richard Booth is a certified mortgage banker with America's First Funding Group LLC, a residential and commercial lender in Neptune, New Jersey.
