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Malthus

Moral Hazard

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Following on from the why work thread.

Is there any point in the indebted of Northern Ireland paying their debts ?

http://news.bbc.co.uk/1/hi/northern_ireland/8188823.stm

Judges in Northern Ireland should now see repossession proceedings against homeowners as a last resort.

This is the cornerstone of a repossession protocol which has been announced by the Lord Chief Justice, Sir Declan Morgan.

It also includes a requirement that lenders demonstrate there is no reasonable alternative before a home can be repossessed.

The protocol will come into effect in Northern Ireland on 5 October.

It also stipulates that lenders demonstrate that they have tried to discuss and agree alternatives to repossession when borrowers get into trouble with their mortgage repayments.

If a case does reach court, lenders will be required to tell the court precisely what they have done to comply with the protocol.

Sir Declan said: "While the steps set out in the protocol are already implemented as best practice by many lenders, the introduction of the protocol setting out the standards expected by the court will help ensure that best practice is adhered to in all cases.

In practice, the new measures should encourage negotiation and reduce the number of court hearings which are both costly and distressing for our clients

Ursula Toner

Housing Rights Service

"This will help make sure that no-one loses their home in Northern Ireland unless there is no reasonable alternative."

Social Development Minister Margaret Ritchie said it would be a "much-needed boost for those people who at present get into mortgage difficulties and then suffer the shock of a repossession order landing on their doormat".

Imo there should be two alternatives :

1. Pay your debts

2. Debtors prison

:ph34r:

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Following on from the why work thread.

Is there any point in the indebted of Northern Ireland paying their debts ?

http://news.bbc.co.uk/1/hi/northern_ireland/8188823.stm

Imo there should be two alternatives :

1. Pay your debts

2. Debtors prison

:ph34r:

this carry on makes me mad. the feckless bailed out by the tax payer agin. anything to try halt the slide in property prices

Edited by getdoon_weebobby

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Following on from the why work thread.

Is there any point in the indebted of Northern Ireland paying their debts ?

http://news.bbc.co.uk/1/hi/northern_ireland/8188823.stm

Imo there should be two alternatives :

1. Pay your debts

2. Debtors prison

:ph34r:

This repossession protocol is none too fancy Malthus - people will still need to repay their debts or else the property will be at risk of repossession.

I looked into this whole thing further today and found the Pre-Action Protocol on Possession Proceedings on the Courts NI website.

If you want to see what the repo protocol covers for mortgages you will find it all here: http://www.courtsni.gov.uk/NR/rdonlyres/AD...es_Protocol.pdf

Edited by paul65

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this carry on makes me mad. the feckless bailed out by the tax payer agin. anything to try halt the slide in property prices

It's better than that...

I'm paraphrasing another HPCer here... People who have been priced out of the housing market are going to have to pay taxes to (support the housing bubble and) help keep themselves priced out of the housing market :angry: :angry: :angry:

Why pay taxes if you can avoid it? The rich don't!

Edited by Belfast Boy

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If it got so bad that lending becomes unprofitable the lenders will say "Why bother to loan money?" That certainly wouldn't prop prices up, of anything.

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We need a banking system which allows safe storage OR speculative saving. The former has little risk (the bank can't touch it - just keep it safe) and the latter passes the risk from the top down.

Why bother? The people who want to gamble for gain can, but the people who just want their money safe are left ok. Essentially, the population wouldn't suffer as a whole by bail outs, bankruptcies and such then - the people who speculated would lose, but they volunteered to risk their money anyway.

The above would work best with full reserve banking, but should probably be offered with fractional reserve too.

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If it got so bad that lending becomes unprofitable the lenders will say "Why bother to loan money?" That certainly wouldn't prop prices up, of anything.

I had always wondered why banks lent money when it is much more profitable to invest it, but that was before I discovered fiat currency etc. Banking is hugely profitable it is the ultimate business where they make up the rules and remuneration/salaries can get massively out of step with reality. While manufacturing is suffering competition from China who manage to get by mostly making a loss, bankers are just printing huge sums for themselves.

I have thought that if the regulation where changed enough to keep the economy in check, ie link reality with banking/lending better by limiting credit then there just would not be enough interest in banking, maybe that would be a good thing and we'd have to save for our houses and they'd get even cheaper. But then manufacturing is bloody hard and we keep pluggin away at that.

I've also thought we just need to get away from an expanding economy, and work out how to be sustainable, but whatever system came up someone would just find a way to abuse it, so that say all the old boys got together and bought all the houses to rent out.

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