My questions was more in response to RD. I agree that huge amounts of debt needs to be written off by banks -- and many bubble-buyers will take a hit when selling their homes. (No one tried to give back their gains when real estate went up, why should people be paid for bad investments when real estate goes down?)
And foreclosures are a quick means of getting things written down to appropriate levels. Homeowners lose their equity and banks lose the rest -- the difference of what they loaned and what they can sell the house for. Quick, efficient, accurate. Much faster and efficient than protracted force loan re-negotiations. I am all for the latter if they are fast and efficient and get home prices down to affordability index levels. But not if they go half way -- and take 6 months to negotiate. And if it takes tax payer money to do so. Spend it on education. And it opens up homes to people who could not afford bubble inflated homes. --- In FairfieldLife@yahoogroups.com, enlightened_dawn11 <no_re...@...> wrote: > > i should have been clearer-- what i meant was that there is no way all > of the debt to be paid is ever going to be, so therefore it will have > to be written off, which isn't exactly the same as forgiveness. > > --- In FairfieldLife@yahoogroups.com, grate.swan <no_reply@> wrote: > > > > --- In FairfieldLife@yahoogroups.com, enlightened_dawn11 > > <no_reply@> wrote: > > > > > > i agree that some form of debt forgiveness is going to have to happen, > > > and that it is a necessity when bubbles of this magnitude occur. > > > > > > --- In FairfieldLife@yahoogroups.com, "raunchydog" <raunchydog@> > wrote: > > > > > > > > --- In FairfieldLife@yahoogroups.com, enlightened_dawn11 > > > > <no_reply@> wrote: > > > > > > > > > > you are only telling half the story-- yes, Bush was all about > > > > > unlimited deregulation, which allowed wall street investment > > banks to > > > > > finance the mortgage industry, which caused the housing bubble, > > which > > > > > has now popped. > > > > > > > > > > however, if the people, including businesses, in the US had not > > > > > succumbed to the oceans of easy credit previously available, > and in > > > > > effect become indebted more than at any other time in our > history to > > > > > the banks, the economic health of the country would not be so > > > > > intrinsically tied to the health of the banks. whether we like > it or > > > > > not, and no one does, if the banks go belly up, so do we. we > have no > > > > > choice but to shore up the banks. > > > > > > > > One of the more interesting concepts that Michael Hudson > introduces is > > > > "debt forgiveness" used in antiquity to restore economic balance in > > > > society. > > > > Can you elaborate on whose debts should be forgiven, and whose should > > not? or is it simply ALL debt -- everywhere. > > > > 1) Should ALL mortgage debts be forgiven? Or just those on the verge > > of foreclosure? An should it be the whole mortgage -- as in "Congrats > > you now own this fine home free and clear." > > > > 2) Are we forgiving all credit card debt? All student loan debt (whats > > the scream coming from NO?). If not all but some of credit card and > > student loan debt, how much and for whom? (mine and yours naturally -- > > but who else?) > > > > 3) All corporate debt? or just some of it. And if you forgive mortgage > > debt, why not corporate debt. 100,000's of businesses are about to > > close their doors because they have too much debt. > > > > 4) All Gov't debt/ I mean why not stiff those chinese for 5 trillion > > in US debt they hold -- I mean like they caused this whole problem in > > the first place by having the gaul to actually loan us money n the > > first place? > > > > 5) Debts to bookies, loan sharks, and local cat houses? That would be > > so Awesome. I mean what they promised didn't actually come true (so I > > have heard) -- so why should people pay those debts, right?! > > > > Now the cost side. > > > > 1) who is going to pay for all this written of debt? The gov't? How > > are they going to pay for it? Issue more debt you say. Wow -- > > brilliant and we can forgive that debt TOO. So Awesome. Its like there > > actually IS a free lunch. Why didn't someone explain it this clearly > > earlier. > > >
