European Tribune - Comments - Helicopter Economics

Helicopter Economics | 27 comments (27 topical, 0 editorial, 0 hidden)

Re: The only problem with this plan (none / 0)

But a lot of the debt that is so problematic is still nominally at >5% on assets that are now 30% underwater. And a lot of those people couldn't pay the mortgage if it were reduced to 3% and the principle cut by 30% because they no longer have jobs. The best hope for them is that the institution that holds the mortgage can't come up with the original paperwork.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Sep 7th, 2010 at 06:15:42 PM EST
[ Parent ]

Re: The only problem with this plan (4.00 / 2)

This part of the problem is best addressed by an own-to-rent policy, allowing the mortgagee to hand back the title while renting the property at market rental rates, and giving them breathing space to get their other debt burdens under control while avoiding bankruptcy so that they are in a position to re-enter the residential property market if they so desire.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Tue Sep 7th, 2010 at 10:39:37 PM EST
[ Parent ]

Re: The only problem with this plan (none / 1)

I am sure they will think of that when they have no more face saving maneuvers left. Better to lose some face than to lose their ass.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Sep 7th, 2010 at 11:19:53 PM EST
[ Parent ]

I'm not so sure ... (4.00 / 4)

... Dean Baker's been pushing it since 2008, but it leaves the banks and other's who peddled mortgages like used cars taking a haircut, so they focused on plumping the bank's bottom line and let the mortgage holders, aka suckers, hang out to sway in the breeze.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Wed Sep 8th, 2010 at 04:01:09 AM EST
[ Parent ]

Re: I'm not so sure ... (4.00 / 3)

As I have been saying for some time, I think it is possible to use partnership framework agreements to create 'Rental Pools' and thereby to replace unsustainable debt finance with a new form of equity at a fraction of the cost.

In that context, I'm making a presentation in London next month to the CEOs of the 25 top UK housing associations on just such a 'debt/equity swap' and have a couple of Scottish housing associations, and the Scottish government's 'investment reform' team, aiming to carry out a prototype community land partnership.

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky

by ChrisCook (cojockathotmaildotcom) on Wed Sep 8th, 2010 at 05:36:22 AM EST
[ Parent ]

Re: I'm not so sure ... (4.00 / 2)

Congrats, Chris! That's a big 4.

Our knowledge has surpassed our wisdom. -Charu Saxena.

by metavision on Thu Sep 16th, 2010 at 05:49:25 PM EST
[ Parent ]

Helicopter Economics | 27 comments (27 topical, 0 editorial, 0 hidden)

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