The Banks Master Plan

Discussion in 'Economics' started by peilthetraveler, Feb 24, 2010.

  1. peilthetraveler, aren't you in effect saying the banks shorted gold when it hit $650 -
    and are still holding

    there's said to be 20 million vacant/for sale homes in the US
     
    #11     Feb 24, 2010
  2. JeffUSA

    JeffUSA

    Not quite the master plan but interesting analysis.

    It appears to me that the banks are really playing accounting games at this point. They are hiding the losses from these houses on their books.

    Remember Federal laws require banks to have a certain amount of capital or the feds will shut them down. So the banks will keep these houses and unload them when they can.
     
    #12     Feb 24, 2010
  3. Hyperinflation wipes out any debt owed on those houses so after hyperinflation the homes are owned free & clear by the banks. Then they just sell these homes "as is" if they dont want to fix it up themselves. Or they just do a few inexpensive cosmetic repairs (new paint, carpet, landscaping) and still sell it as is and get near top dollar.
     
    #13     Feb 24, 2010
  4. Yeah, If i was making 20 million per year from my job, I would not care what the share price of my stocks were doing either.
     
    #14     Feb 24, 2010
  5. Top dollar?
    Who'll be buying?

    There are no top-dollars in this economy, only consolation prizes.
     
    #15     Feb 25, 2010