The Conservative Cave
Current Events => General Discussion => Topic started by: zeitgeist on October 02, 2011, 08:09:25 PM
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And so it begins.
A "great haircut" to kick-start growth
http://old.news.yahoo.com/s/nm/20111003/ts_nm/us_haircut
NEW YORK (Reuters) – More than three years after the financial crisis struck, the economy remains stuck in a consumer debt trap. It's a situation that could take years to correct itself. That's why some economists are calling for a radical step: massive debt relief.
Federal policy makers, they suggest, should broker what amounts to an out-of-court settlement between institutional bond investors, banks and consumer advocates - essentially, a "great haircut" to jumpstart the economy.
What some are envisioning is a negotiated process in which cash-strapped homeowners get real mortgage relief, even if it means forcing banks to incur severe write-downs and bond investors to absorb haircuts, or losses, in some of the securities sold by those institutions."We've put this off for too long," said L. Randall Wray, a professor of economics at the University of Missouri-Kansas City. "We need debt relief and jobs and until we get these two things, I think recovery is
{snip}
And the law of unintended consequences will kick in shortly.
Redistribution of wealth anyone?? :popcorn:
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**** that. Why should I bail out everyone dumb enough to think it was impossible to lose money buying a house?
I most especially have no sympathy whatsoever for anyone still living in a house and financially able to make the payments, but who is upset because "It's under water." Tough shit, dall the whaaambulance. You made a bad deal, and you have the same damned house you bargained for and got, so FOAD, you aren't out any money that ever really existed in the first place. There is no reason on Earth for everyone else to have to involuntarily buy into fixing you up on the bad deal you voluntarily made.
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**** that. Why should I bail out everyone dumb enough to think it was impossible to lose money buying a house?
I most especially have no sympathy whatsoever for anyone still living in a house and financially able to make the payments, but who is upset because "It's under water." Tough shit, dall the whaaambulance. You made a bad deal, and you have the same damned house you bargained for and got, so FOAD, you aren't out any money that ever really existed in the first place. There is no reason on Earth for everyone else to have to involuntarily buy into fixing you up on the bad deal you voluntarily made.
I have no disagreement with what you say. But, what I am most concerned about is the consequences for the bond markets. Bonds are used to finance many small town building and public works projects. Investors, private and institutional, rely on the stream of interest payments. Underming the bond markets is not a good thing.
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H5, Zeitgeist, you are of course entirely correct on the catastrophic effect this stupid idea would have on financial markets as a whole, as well as undermining the entire concept of moral responsibility to pay debts upon which a free market economy is based. I was just giving my individual, personal reaction.
:cheersmate:
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Amen...and how many people would actually gain from such a scenario? Every "adjustment" program this administration has come up with so far has assisted far fewer than it claimed to, and most of those end up in default again. Gee, who could have seen that one coming?
Top it off with the fact that people like me who might like a little of the 40-45 percent tax burden lifted off me won't get it (and I'm not rich by any means) and being given to people who neither need nor deserve it, and this administration is going to have to deal with the fact that in 13 months they're going to be given the old heave-ho.
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Amen...and how many people would actually gain from such a scenario? Every "adjustment" program this administration has come up with so far has assisted far fewer than it claimed to, and most of those end up in default again. Gee, who could have seen that one coming?
Top it off with the fact that people like me who might like a little of the 40-45 percent tax burden lifted off me won't get it (and I'm not rich by any means) and being given to people who neither need nor deserve it, and this administration is going to have to deal with the fact that in 13 months they're going to be given the old heave-ho.
But unfortunately they have made a big run toward more socialism that we will be stuck with forever and ever. They never give up an inch once they've gotten it.
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Amen...and how many people would actually gain from such a scenario? Every "adjustment" program this administration has come up with so far has assisted far fewer than it claimed to, and most of those end up in default again. Gee, who could have seen that one coming?
Top it off with the fact that people like me who might like a little of the 40-45 percent tax burden lifted off me won't get it (and I'm not rich by any means) and being given to people who neither need nor deserve it, and this administration is going to have to deal with the fact that in 13 months they're going to be given the old heave-ho.
Quote/ Amen...and how many people would actually gain from such a scenario? Every "adjustment" program this administration has come up with so far has assisted far fewer than it claimed to, and most of those end up in default again. Gee, who could have seen that one coming? Quote\
So when do we Conservatives gather on the Brooklin Bridge to protest Obama and his Amego's? [16]
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I agree you couldn't rely on the Government to figure out who would gain from this, it would just become another bloated program that promoted people being lazy while hard working Americans pay for it.
What makes me mad though, is that we bailed out the banks, and subsequently Corporate America, and they haven't increased lending or hiring from it... I only just receive the same old predatory credit card apps with the same "introductory offers" except now they put the APR % in Bold.