Jump to content
House Price Crash Forum
shindigger

Small Mortgage As Debt Jubilee Hedge

Recommended Posts

Getting a tad twitchy with all this default talk.

If debts were written off worldwide, would there be any chance of the over borrowed being bailed too.

Would national debt and personal debt ever collide, in a jubilee type way?

And if so, would a small mortgage (less than 50% borrowed) on a BTL, work as a hedge against all the over borrowed muppets getting a free lunch.

Just so that the self same mortgage could be written off too.

I'm sat holding cash and NSI certs,and a bit of PM, and am getting a bit worried.

I wouldn't want to have to start torching the homes of the bailed out now would i?

Dont want a shelling for this theory, dont even want to do it, but these ******* are capable of anything right now.

Thoughts and observations welcome.

Share this post


Link to post
Share on other sites

I don't mind admitting I've thought of this almost daily for the past year or two, but with my luck any jubilee would have the cut off date as the day before my mortgage was taken out

:(

Share this post


Link to post
Share on other sites

Could you clarify please.

If the gubmints of the world are going to start chucking free money about, surely it would be a good idea to have some debt, that could be subject to a jubilee, as part of a balanced portfolio.

The hedge being that if the worst did not happen, i'd still have a manageable investment on my hands (reluctant landlord syndrome) and if it did happen, and they jubileed the lot, i'd be on the right side as a borrower, not just a seething mass of anger and boiling piss.

I dont want 6 years of limbo to count for nothing, if all these muppets have been living the high life that they ultimately couldnt afford.

Or put another way, should i start chasing the zombie up the street whilst shouting "bite me bite me"!

HTH.

Share this post


Link to post
Share on other sites

Getting a tad twitchy with all this default talk.

If debts were written off worldwide, would there be any chance of the over borrowed being bailed too.

Would national debt and personal debt ever collide, in a jubilee type way?

And if so, would a small mortgage (less than 50% borrowed) on a BTL, work as a hedge against all the over borrowed muppets getting a free lunch.

Just so that the self same mortgage could be written off too.

I'm sat holding cash and NSI certs,and a bit of PM, and am getting a bit worried.

I wouldn't want to have to start torching the homes of the bailed out now would i?

Dont want a shelling for this theory, dont even want to do it, but these ******* are capable of anything right now.

Thoughts and observations welcome.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4285187/Biblical-debt-jubilee-may-be-the-only-answer.html

Share this post


Link to post
Share on other sites

If you are securing the loan against a house, and the loan is going to be for 50% of the value of the house then you can get lots of money for 3% or so at the moment.

That is a very low interest rate - even if the debt is not written off you could use the loan to buy other assets that would yield more than 3%

Hence you are quids in.

Share this post


Link to post
Share on other sites

Have been thinking about this also:

Son is off to Uni this year and will have to rack up debt, but if he has a mortgage he gets fees paid by taxpayer. I am thinking about giving him cash, so he can get a mortgage-although I'm not sure his paper round will meet the lending criteria of high street banks, so he might need a liar loan. All in all it could be a good investment to allow him to qualify for free education instead of the expensive kind, and take care of accommodation costs and possibly make some cash from house-share. And if he can't get a job he gets the mortgage interest paid via SMI, so has somewhere free to live, and if the wheels really come off the loan can just be written off. In so many ways debt is good. Problem is that it just goes against every principle I ever had.

Share this post


Link to post
Share on other sites

If you are securing the loan against a house, and the loan is going to be for 50% of the value of the house then you can get lots of money for 3% or so at the moment.

That is a very low interest rate - even if the debt is not written off you could use the loan to buy other assets that would yield more than 3%

Hence you are quids in.

Like a suburban carry trade?

Share this post


Link to post
Share on other sites

I don't mind admitting I've thought of this almost daily for the past year or two, but with my luck any jubilee would have the cut off date as the day before my mortgage was taken out

:(

+1 - been thinking more and more about this in the past 12 months.

Share this post


Link to post
Share on other sites

I seriously doubt that personal loans will be as high on the agenda for being 'written' off as Government loans. Why would they be ? Why let everybody be 'free' with nothing holding them back from what they want to do ?

Nah - if this is to happen - Governments will work out how to let their own debts disappear - whilst the debts of the masses remain. Why wouldn't they ?

Share this post


Link to post
Share on other sites

Have read reports that some banks with liar loan mortgages on their books and in trouble themselves have offered what are called Golden goodbuys to people who redeam their mortgages , only haveing to pay a certain % of what they owe instead of the full amount. I think Allied Irish was one of them , it was reported upto 25% reduction in the debt.

Share this post


Link to post
Share on other sites

Getting a tad twitchy with all this default talk.

If debts were written off worldwide, would there be any chance of the over borrowed being bailed too.

Would national debt and personal debt ever collide, in a jubilee type way?

And if so, would a small mortgage (less than 50% borrowed) on a BTL, work as a hedge against all the over borrowed muppets getting a free lunch.

Just so that the self same mortgage could be written off too.

I'm sat holding cash and NSI certs,and a bit of PM, and am getting a bit worried.

I wouldn't want to have to start torching the homes of the bailed out now would i?

Dont want a shelling for this theory, dont even want to do it, but these ******* are capable of anything right now.

Thoughts and observations welcome.

Well purchased gold at $619*23 oz bars back in 2007 and i feel happy.

Share this post


Link to post
Share on other sites

Have read reports that some banks with liar loan mortgages on their books and in trouble themselves have offered what are called Golden goodbuys to people who redeam their mortgages , only haveing to pay a certain % of what they owe instead of the full amount. I think Allied Irish was one of them , it was reported upto 25% reduction in the debt.

I think that was only or mainly for BTLs with large portfolios, A kind of BOGOF proposal.

Share this post


Link to post
Share on other sites

Been having similar thoughts recently... My NSandI certs yield 5% but debt is much cheaper. Savers are being punished to help debtors. If we moved out of our rented house and bought something at a keen price we could benefit from the great zero interest rate giveaway rather than worry about interest rates, the power of sterling etc.

Since I'm pretty sure that Govt. will destroy sterling with its low interest rate policy and huge deficit, it makes sense to short the currency by holding sterling denominated debt doesn't it?

Share this post


Link to post
Share on other sites

A debt jubilee is the only way to hit the reset button.

In the Weimar I think everyone who had a mortgage got their debts reduced by 85%, I think Adam Ferguson's book said that those with mortgages at the start of the crisis ended with with 15% of the original debt reinstated.

Although the dynamics of doing this are immensely complex as your also going to have to adjust savings / pension entitlements accordingly and too many people are purely fixated on numbers rather than purchasing power.

We are looking into Pandora's box but we have no alternative but to open it.

Share this post


Link to post
Share on other sites

http://webcache.googleusercontent.com/search?q=cache:1ESzRKT3xqoJ:university.unitedstatesliberty.org/654/textbooks/adam-fergusson-when-money-dies-nightmare-of-the-weimar-collapse/+adam-fergusson-when-money-dies-nightmare-of-the-weimar-collapse&cd=1&hl=en&ct=clnk&gl=uk&client=firefox-a&source=www.google.co.uk

As the clamour grew, with support from the Courts,* (Most notably by a judgment given by the Supreme Tribunal at Leipzig on November 23, 1923.) against the iniquities which inflation had caused, the government attempted to redress what grievances it could. By the decree of February 14, 1924, known as the Third Taxation Ordinance (one of more than 70 ordinances issued during the period of the Enabling Act), industrial debentures and mortgages were revalued at 15 per cent of their original gold price. Mortgage bonds, savings bank deposits and other obligations were revalued at slightly higher rates. Meagre as these terms may have been, they meant nothing to people who had been obliged to part with their securities or whose credits had been paid off in paper earlier on. A further law of July 1925 therefore introduced a retrospective element to cover extinct mortgages and debentures which had been held in good faith since at least five years before, and raised the rate of mortgage revaluation to 25 per cent.

Found the extract.

Share this post


Link to post
Share on other sites

The problem is that your debt can be traded on the markets as an "asset" that someone will buy who has a willingness to chase you for, even if the original lending institution goes under. The other danger is that the asset you borrowed against depreciates more than the value of the forgiven debt so what you gain in forgiveness you lose in equity, if your going to use debt as a hedge you want as little equity in the asset you are borrowing against as possible.

Edited by goldbug9999

Share this post


Link to post
Share on other sites

interesting thought...

shame that debt is not what it seems..

YOUR small mortgage is an ASSET to these organisations that are potentially seeing their capital assets defaulted.

YOU are going to get a shock if you think that just because your lender has failed, your debt will dissappear.

EDIT,

I see others have suggested this also above.

Edited by Bloo Loo

Share this post


Link to post
Share on other sites

The problem is that your debt can be traded on the markets as an "asset" that someone will buy who has a willingness to chase you for, even if the original lending institution goes under. The other danger is that the asset you borrowed against depreciates more than the value of the forgiven debt so what you gain in forgiveness you lose in equity, if your going to use debt as a hedge you want as little equity in the asset you are borrowing against as possible.

Noted.

I sense a "if you cant beat em, join em moment" sliding over my horizon.

Give me some of your freshly printed you villainous bastards.

I know quite a few people who have NO intention, plan, or ability to pay back what they owe. Other than the monthly interest.

None of which is flashing red on a bank terminal anywhere.

What has been borrowed, will never be payed back.

Maybe i'll have some of that while the gettings good.

Sad isnt it? :(

Share this post


Link to post
Share on other sites

interesting thought...

shame that debt is not what it seems..

YOUR small mortgage is an ASSET to these organisations that are potentially seeing their capital assets defaulted.

YOU are going to get a shock if you think that just because your lender has failed, your debt will dissappear.

EDIT,

I see others have suggested this also above.

And, worse, unless your mortgage is fixed for the term, you might get a shock when trying to renew.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.