here's a way out for the banks...

Discussion in 'Economics' started by scriabinop23, Dec 4, 2007.

  1. Challenge this one:

    Have all the banks holding risky CDOs, SIVs, and home equity loan assets find the end users of this debt and incentivize them to pay off their debts by offering a 10-30% bonus while somehow finding a way to not allow these people to participate by merely moving debt from one heloc or mortgage to another [or to personal credit]. Even a siphoning of $$$ from personal savings to pay off debts would result in decreased reserve requirements for banks, even if that meant equal net holdings.

    If etrade is justifying selling debt assets at 27c on the dollar, offering a 30% bonus for early payoff and reduction of high risk debt holders is a win win. this way, banks get 70c on the dollar for low quality debt assets and 'subprime' schlocks make an instant 30% profit on their DEBT!!

    More specifically making a high risk debt reduction plan that is to be funded only by paycheck deduction and/or early 401K/stock withdrawals might isolate some of the 'reserve shuffling loopholes' that are inherent flaws here.

    If I was strapped, I'd commit to pay off my debts in an accelerated pace for 1-2 yrs and get free money out of nowhere.

    this wreaks of bailout, but how is allowing allowing hedge funds to buy up depressed assets possibly below market value any more beneficial?
  2. sounds like a plan....

    but getting the illegal alien Gomez family in Barstow, Calif. in touch with the People's Party pension fund in Estonia which has hedged the account with some broker in Shitstonia, Latvia to go for the deal... may be a stretch...
  3. nevadan


    Sounds like a taxable event to me.
  4. hahahah
  5. i forgot that the currency risk is laid off on the Power-to-Putin walk up Kiosk Bank w/ 10 locations to serve you in S. Moscow....
  6. i read an interesting idea today - take the oversupply of homes and let immigrants into the country if they have $300,000 in capital to pay for them and an additional $200 000 to live for a few years... subject to security clearance and if they aren't terrorists etc... cleans up the oversupply, everyone gets paid, construction sector goes back to work and the U.S. of A gets some of the worlds finest rich imports...
  7. That's sort of like the Bush* plan, except:

    1. The people let in are dirt poor

    2. We let them have access to all our health services without charge

    3. They pay no taxes

    4. The Gummint gives them a house

    *was semi-kidding about "Bush Plan", but it actually IS the plan of Nancy Pelosi :(