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Anyone ever have to deal with having accounts at a bank or S&L that fails? How long until you get access to your FDIC insured balances? What if you have automatic bill pay? Do those bills get paid?
I’ve recently noticed that one of the banks that I have accounts with (small balances but with the bill pay) is deteriorating rapidly. I’ll be working to change this situation as quick as possible but I thought I’d ask the questions just in case I’m not quick enough.
Thanks,
Paul
Well, you could issue special rent-paying credit cards. Or maybe have the landlord back-load the rent costs ($200/month for the first month, $9,000 for the 12th month).
Simple. Make rents tax deductible !
I just love the how double-edged this is. Since the rents can be tax deductible, people will be willing to pay more tax, eventually increasing rents for everyone. That would help the rent v/s PITI imbalance to reduce. But then the tax advantage of "owning a loan" go away. But it's too tough to REIC to go through this logical maze. So they will gladly accept it.
Unfortunately, to use these wonderfully innovative solutions, we first have to get rid of some pesky tenant protection laws.
Arghh. Please read the above as
Since the rents can be tax deductible, people will be willing to pay more rent, eventually increasing rents for everyone.
Stigmatize people who don't rent. Encourage people to rent multiple homes. "Investment" leases on vacation homes.
Encourage people to become "rent-poor." It's good to eat Top ramen in a granite countertop and SubZero filled kitchen.
Paul,
In the S&L meltdown, depositors were unable to access their funds for several weeks - and many were delayed much longer. It wasn't policy which created the delays. The FDIC simply was not scaled to respond to so many failures in a reasonable time.
Strictly speaking, the situation is not perfectly analogous - at least not quite yet. In a severe meltdown, though, you're likely to be denied access to your money (though no one will dispute it's yours) for an inconveniently long time.
“Investment†leases on vacation homes.
I thought timeshare was something like that. I once went on a free vacation because I attended a tour of the vacation property and suffered the presentation. The free 4 nights / 5 days with $100 to spend etc was worth it. But it would have been incredibly stupid to purchase the timeshare. It can make sense for a very few select people. But my guess is most people fall for it and later think it was a mistake. It's an amazing scam.
astrid Says:
> Well, you could issue special rent-paying credit cards.
> Or maybe have the landlord back-load the rent costs
> ($200/month for the first month, $9,000 for the 12th
> month).
Many tenants pay the rent these days with the "magic checks" that they get in their credit card statements. I have told my managers to let me know when they see one since it usually means that the tenant is having financial problems…
Pass a law (American Dream Protection Law) that makes sure you pay 5% more in rent every year. If you move, you carry your rent basis, no matter what. If you get married then, your and your spouse's rent basis gets added. If you live in a Honda, you pay additional income tax that would have equaled to your rent basis. This continues till you purchase a loan. If you pay off that loan, you will again have to pay additional income tax that represents the rent. If you refinance, then of course you are OK.
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Please help the REIC and banksters! (for those unfamiliar with the term, please refer to the Housing Bubble Glossary).
They need our help. Signs their beloved mega-global housing/credit bubble is beginning to falter are now everywhere and unmistakable. No matter how low toxic-mortgage lenders lower "standards", it appears that they've exhausted their supply of typical FBs (innumerate 'tards and Marshall Reddick-worshipping specuvestors) and now they're even running short on falling-knife-catchers.
Sure, they're counting on a taxpayer-funded federal bailout of banks/lenders and GSEs --after all isn't that what taxpayers are for? They don't call it "Privatize profits, Socialize Risk" for nothing, do they? That's a gimme. Problem is, even with suckers like YOU footing the bill for some f***ing idiots' mistakes, there's still no way to avoid some pain for the industry players. Some toxic lenders have already gone out of business, while others are restating incomes/losses and teetering on the edge of insolvency --and this is only the beginning! Plus, lots of newly minted Realthwhores, fly-by-night mortgage brokers and hit-the-number appraisers are now facing unemployment.
This just will not do! Pain and negative consequences are for thrifty, responsible suckers like you --not the REIC!! Oh, the humanity... what to do, what to do?
Wait --I've got it!:
The biggest problem right now with maintaining that permanently high plateau is that rents cannot easily be inflated with debt, the way housing prices can. There is no such thing as a fraudulent cash-out refis, HELOCs or neg-ams for renters --they must pay their rent with real earned income and/or savings (yes, some people out there still have savings --can you believe it?!). Since renters must pay rent using real money vs. monopoly bubblebucks, there's no way to ignite crazy bidding wars on rentals. And global wage arbitrage is keeping wages firmly in check --no inflation happening there (crooked CEOs excepted, of course). Sadly, there's currently no way to funnel huge amounts of Fed/MBS/Chinese liquidity into the hands of renters, so they can bid rents to the sky.
And herein lies the solution: the REIC must create new debt vehicles for RENTERS!
Your assignment: How can the REIC and banksters create enormous new debt vehicles for renters, capable of inflating rents as high as house prices, thereby cancelling the rent-vs.-buy imbalance --without having to resort to any of that pesky wage inflation?
Discuss, enjoy...
HARM
#housing