Thursday, Feb 04, 2010
The avalanche of debt
New York Times: No Help in Sight, More Homeowners Walk Away
In 2006, Benjamin Koellmann bought a condominium in Miami Beach. By his calculation, it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040. “People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not let it go in default and rent a better place for less?”
“The overwhelming bulk of people who have negative equity stay in their homes and keep paying,” said Michael S. Barr, assistant Treasury secretary for financial institutions.
It would cost about $745 billion, slightly more than the size of the original 2008 bank bailout, to restore all underwater borrowers to the point where they were breaking even, according to First American.
Posted by debtfree @ 07:07 AM (590 views) Add Comment
4 Comments
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1. freemanphil said...
These home owners can walk away and start again from scratch. In the wonderful New World Order of regional and IMF/UN governance, countries cannot default. They get forced into austerity and receivership with taxes increased and services reduced to maintain payment to the bankers. We live in a one world government run for and by the bankers. The UK have adapted already to de-industrialization, so the establishment think we are ready for the next stage of servitude. The next generation are ipod zombies who will adapt. It is up to us to say no, that we must default on debt that cannot be paid. The bankers simply must take responsibility for false investments, and, must go to prison for the fraud that has been involved.
2. Crunchy said...
1. freemanphil said...
That would not leave many left to run/ruin America. I still can't get my head around why Obama, a very likely illegal Kenyan imposer (why is the Constitution now use as toilet paper) is still President without congress demanding he's credentials be released from the said vault. And it doesn't stop there!
I'm of the opinion that corruption is deeply entrenched. Does foxes guarding the White House springs to mind? /Crazy talk.\
Meanwhile, hundreds of UK MPs are being severely punished with the £1million payback. The average Joe, sorry 'JO' (politically correct) thinks that's a lot of dosh and punishment enough. LOL. Law can't even clamp down on the little players, let alone audit the Fed, with stronger grounds now than ever.... If you have been following events that is. Don't get me started on Ben Bernanke??????
Which one freeman? Financial terrorism or the odd bomb. I shall dispense with the other choices.
3. doomwatch said...
if he's only BEGINNING to FEEL like a sucker, he IS a sucker.
4. doomwatch said...
At least in the US there is the option just to walk away. Here, thanks to legislatino passed by you know who, the mortgage lender
can employ the services of a dubious debt collection agency that employs ex-crims, bouncers and other general scum, so called
"bailffs", to chase you to your dying day for the negative equity, plus of course their suitably excessive
collection "charges".
Worth considering when next bragging at a dinner party about your new house, but you may have
"over-stretched" yourself.