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Obama, Economists at odds on Mortgage debt
invite response
2012 Nov 22, 11:35pm 3,272 views 11 comments
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tatupu70
2012 Nov 23, 12:01am
Have you ever considered that it might not be that simple? Perhaps there's a reason that seven of the world's top economists don't agree with you?
I'm sure patb has a long history of fixing problems with national economies.
Bellingham Bill
2012 Nov 23, 6:04am
just let people file bankruptcy, clear their slates and take the crdeit hit and move on. That's the deal.
problem with that is that it just transfers more wealth from the 95% to the 5%.
That's our ENTIRE problem, well, outside our trade deficit which is also a crappy Gini issue in disguise (the top 5% benefits from a strong dollar more than the 95%).
But as a renter I have to say where's MY fucking bailout!
I didn't buy 2001-2004 and 2006-2007 cuz I knew there was too much bullshit in the system.
Fat lot of good that prudence did me. Just paying twice the rent I was in 2002.
if the top 7 were so smart, it'd be fixed.
Tha tit wasn't speaks to the general nature of the problem.
Cram downs, writeoffs and stimulus aimed at fixing the trade deficit will do a lot, instead we have this degenerate monetarism
if the top 7 were so smart, it'd be fixed.
Why? You think there's some super-genius plan that can "fix" the aftermath of the bursting of one of the biggest bubbles in human history?
I wish I was sitting down when I read this thread
You mean to tell me that the monied interests most reliant on keeping THEIR game going, see solutions only that are beneficial to them and theirs!?
David Losh
2012 Nov 24, 2:22am
We will have to have debt forgiveness.
Mortgages would be a good start.
Banks should take the losses on money they freely handed out knowing full well the economy was about to collapse globally.
It's the same today. If banks knew that if a person went into bankruptcy with the ability to have a mortgage cram down in Chapter 13 they would think twice about the loans they are making.
Being able to refinance your mortgage a full two percent lower than they were originated at seems like a debt forgiveness program to me.
being able to refinance, is a slash to the income of the mortgage holders.
Slashing the debt held now, is a hit to capital, income and the ability to move, etc..
patb says
just let people file bankruptcy, clear their slates and take the crdeit hit and move on. That's the deal.
problem with that is that it just transfers more wealth from the 95% to the 5%.
No It doesn't.
http://www.washingtonpost.com/business/economy/economists-obama-administration-at-odds-over-role-of-mortgage-debt-in-slow-recovery/2012/11/22/dc83f25e-2e87-11e2-89d4-040c9330702a_story.html
"One year and one month before President Obama won reelection, he invited seven of the world’s top economists to a private meeting in the Oval Office to hear their advice on what do to fix the ailing economy. “I’m not asking you to consider the political feasibility of things,†he told them in the previously unreported meeting.
There was a former Federal Reserve vice chairman, a Nobel laureate, one of the world’s foremost experts on financial crises and the chief economist of the International Monetary Fund , among others. Nearly all said Obama should introduce a much bigger plan to forgive part of the mortgage debt owed by millions of homeowners who are underwater on their properties."
Geez the biggest collection of idiots you could imagine,
I don't think you should forgive debt, just let people file bankruptcy, clear their slates and take the crdeit hit and move on. That's the deal.
Also, you can't unwind things without ending the trade in MBS.
#politics