I am just saying that banks will try and keep foreclosed property off their books because that is what it is in their interest to do. It is very difficult to sell repo'd homes in a falling market and those falls in value have to be booked by the bank if it carroes the repo'd home on its balance sheet. That's all. No asset witedown and no cash outlay if the home "owner" can service the loan enough that it can be classed as erforming. Banks have been known to make additional loans to corporates just so they can make a payment that revents the loan bein classed as non performing. If the banks thought they could sell the foreclosed property today they would boot out the homeowner today, because if further down the road the homeowner stops paying they have to take a depreciated property onto their books. If they could sell today they would, but as they can't they are trying to delay. The fact that they are considering this scheme is a negative portent for the market. It has nothing do do with humanity or even ex college footballers getting on the 'phomne to them about being a patriot/team player.
I'm with you on this one EMR. I want to find a society that allows free markets, not constant intervention.
The example of the banks is capitalism at its highest level...just like the oil companies... They are paying for and using the legal side of the business...this is why small business cannot compete with big business... You think that because of a few soundbytes that an advertising budget bought... that the US is actually controlled by its people ? You are now experiencing capitalism at its highest form... ................................................................................................. This is why there needs to be structural change in the US... And social capitalism is 100 million times better than what is currently happening in the US... Not Chavez Socialism...Not the current old form of Capitalism... But a new form of Capitalism needs to take shape.... Unless the US wants to get AM-BUSHED again .....
EMP - most of what you've said in the past has been a joke, but on this - I completely agree with you. As for moving to Europe, that's exactly what I have in mind. Switzerland, to be exact.
Excellent Commentary All ..................................................................................... If these items are implemented in the US... The US Dollar...and the US will rock on !!!!!!!! Eliminate the IRS....replace with consumption tax Eliminate Legal Largesse from small business.... Start Internet Based Education for all income groups...level the playing field...Education should not depend on parents .... Start Internet based government...concerning elections....spending tax money etc..The current form of elections depend on a few sound bytes and an advertising budget...Compared to the internet, this is a joke... Reform Capitalism....Expand the base of electronic stock exchanges to offer what is needed to get all stellar companies of the world to domicile in the US... If an individual works for a company..they are entitled to own some stock....This will make the company better...and spread wealth around...2% of the US population own more than 50% of the wealth..... Reform energy usage...get strict...ban oil fueled vehicles...ban them...stop the ethanol from land hoax....focus on solar and electricity....mandate them... Focus taxes on infrastructure....
To "right the ship" in America, we need MAJOR changes in several areas. Seeing how the present system is so favorable for the Gummint and elite to exploit, there will be no major changes in virtually anything... not until there is a perceived crisis. (Housing is not perceived as a crisis, at least not yet.) Therefore, we will probably "barrel down the same path until it's too late to save"....
Why is it socialism when a policy helps the little guy and not when a policy helps big business? (Though in this instance, it is not altruism or the elevation of socialism, but a bank bailout. don't fool yourself.) There is traded paper worldwide that hinges on the values of US real estate. Propping up houses maintains what little value that paper has left. True Capitalism, i.e. leaving the small guy get foreclosed, would destroy the investors. Stop being so short-sighted and brainwashed. And why is it when the banks get bailed out (remember the RTC in the 80s and early 90s?) Or the LTCM crisis? Or big Oil subsidies and Governemnt R&D grants in the 90s that trickled down and somehow "morphed" into dividend payments to investors - where were the complaints then about socialism? Big Business and Big Banks have had a monopoly on "Socialism" to a much higher degree than the poor slob who gets crumbs. Big Business and Big Banks always socialize their losses and somehow CEOs of publicly traded companies still walk away with millions. We monetize the bad debts by inflating the fiat currency and savers and consumers suffer from the resultant inflation. Speculators are the first to get rewarded. And who pays the salaries of failed CEOs like Stanley and Prince? We all do. One way or another we all do. Think big picture, guys. It's too simplistic to go after the small guy/poor slob meanwhile the big guys are really fleecing us. Don't be naive. We never had true capitalism. No one has.
Joesixpack and Company are on the train tracks and the train is coming into town and there's nothing they can do about it. The average person is caught between levels of conciousness. All possession is based on conciousness. All gain is the result of an accumulative conciousness. All loss is the result of a scattering conciousness. Coke, Pepsi, hey Miller Lite is less filling and has less carbs but Bud Light tastes better, wait Coors lite girls are fine, that must be the best, 0% Financing for 12 months, 6%APR after, $5000 rebate, so-in-so is dating so-in-so and so-in-so is cheating on so-in-so but so-in-so treats so-in-so poorly, blah blahbalh.. There is no accumulation of conciousness taking place. Concentration and critical thinking skills go untested for years. The massive redistribution of wealth has just begun. Either retrain your way of thinking and get off the track and jump aboard.