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My subversive plan is to start a distressed mortgage-backed-security valuation outfit ("the outfit"), value the securities as if default were a writeoff (repossession with no prospective buyers), therefore valuing them cheaply, and if and when default does happen, instead of repossessing offer people to restructure their debt through a community land partnership in which "the outfit" is just an equity investor and the market rent (lower than the mortgage payment that caused the default but a roughly inflation-indexed cash flow nonetheless) goes towards paying "the outfit" a "capital rental". The "capital rental" is payable as a combination of cash and "equity shares" (useful in really dire times for the owner-occupier) and excess payments go towards repurchasing the capital contributed by "the outfit".

It'd be nice if the battle were only against the right wingers, not half of the left on top of that — François in Paris
by Carrie (migeru at eurotrib dot com) on Sat Mar 29th, 2008 at 01:32:46 PM EST
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Just kidding.  'Equitize' may be exactly the term that we need.  We should write everything on this, and related, subjects and include this term - or "fairsharing".  Not kidding.

Migeru - I hope that we will have substantial time to talk in Paris - May 3, yes? (I will follow up the meet-up diary with a plan diary this weekend.)  I am hopeful that we are going to start to set up some kind of deal that will include a career of this type for you.  So - I trust that you're not teasing - excessively - in your comment above.

paul spencer

by paul spencer (paulgspencer@gmail.com) on Sat Mar 29th, 2008 at 02:09:22 PM EST
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I'm not teasing except I don't have a billion dollars.

It'd be nice if the battle were only against the right wingers, not half of the left on top of that — François in Paris
by Carrie (migeru at eurotrib dot com) on Sat Mar 29th, 2008 at 03:13:33 PM EST
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Well, as long as it's not Euros, we should be OK.  At $10,000 each, that's only 100,000 members (or shares at any rate).  Best start planning.  By the way - you will help with marketing, too?  At least, at the first?

paul spencer
by paul spencer (paulgspencer@gmail.com) on Sat Mar 29th, 2008 at 04:49:22 PM EST
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That's exactly what I mean by a "Debt/Equity Swap".

"The future is already here -- it's just not very evenly distributed" William Gibson
by ChrisCook (cojockathotmaildotcom) on Sat Mar 29th, 2008 at 02:22:59 PM EST
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This plan is a key part of what solveig and I have been working to achieve since we met, and indeed, was actually why we met.

We formed NET Partnership LLP for the purpose and it currently consists of:

(a) Nordic Enterprise Trust ("NET") - Scottish charity, and a Company Limited by Guarantee - which is the "Custodian" of both the relevant "Intellectual Property", and "Purpose" of the LLP (signatory solveig);

(b) solveig herself, as the other initial "founder" member and (currently) sole "Operating member".

I worked with NET to develop both the above LLP and the "Capital Partnership" and "Guarantee Society" concepts.

We received a little backing from Innovation Norway (ie the Norwegian government), but for the most part have funded this ourselves.

We are involved in one major (300 property) demonstration affordable property scheme in Scotland.

But building new developments is only part of the model: there is equal potential in refinancing existing assets.

I have for many years seen the refinancing of debt with a new form of "non-toxic" Equity as being a key component of a new and fairer financial system and have written about it extensively on this site, explaining it under forensic questioning, particularly from Migeru!

NET is already in the process of discussing a joint venture with financiers (a major property fund) and "ethical developers" in respect of just this.

Both solveig and I believe that detailed development work should be carried out outside the glare of the ET spotlight.

We are of course happy to work with the right people to develop these concepts provided of course that we agree:

(a) a common purpose;

(b) who does what, and for what.

I believe that many of the "right" people are to be found at ET.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sat Mar 29th, 2008 at 03:15:32 PM EST
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right on...

You can't be me, I'm taken
by Sven Triloqvist on Sat Mar 29th, 2008 at 04:23:01 PM EST
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