Jump to content
House Price Crash Forum

Archived

This topic is now archived and is closed to further replies.

Darkman

Christine Lagarde Suggests Intergenerational Mortgages

Recommended Posts

I only heard this in a chat room, and googling didn't reveal links. Maybe someone can do better?

But what I heard was Christine Lagarde (new head of the IMF) has suggested intergenerational mortgages. It was at Jackson Hole with Ben Bernanke.

Scary stuff indeed. Anyone with more info?

Share this post


Link to post
Share on other sites

I only heard this in a chat room, and googling didn't reveal links. Maybe someone can do better?

But what I heard was Christine Lagarde (new head of the IMF) has suggested intergenerational mortgages. It was at Jackson Hole with Ben Bernanke.

Scary stuff indeed. Anyone with more info?

Makes sense if you're a money issuer-lender renting to the people their means of exchange.

If the current generation's credit is maxed out then get them to borrow more by commiting their children's earning power.

If enough of them fall for it then it forces other wannabe property buyers to follow suit.

Neat, as Dennis Dunstable might have said.

Share this post


Link to post
Share on other sites

So...

You are forced to have kids.

You are forcing your kids to take on your debt even before they are born.

You become beholden to your kids, and they beholden to you, because of the above.

It restricts thr ability to move freely.

Why don't they just nuke the planet? I mean, given a choice between doing what needs to be done re capitalism, banking and house prices they would clearly choose to nuke the planet in an either / or scenario.

T*ssers.

Share this post


Link to post
Share on other sites

So what? We already have interest-only mortgages, which are effectively infinite duration as you don't pay back any of the principal.

If people can't pay the interest, they can't pay the interest, and the duration is irrelevant. If they want to push up house prices they'll have to start allowing buyers to pay less than the full interest and have the difference build up on the principal instead.

Heck, they could even have negative-interest mortgages where the bank pays the buyer and adds the cost to the mortgage.

Share this post


Link to post
Share on other sites

T*ssers

No, just bankers. Can you imagine any other section of society who would seriously suggest such a thing, or to whom it would be perceived as being advantageous in any way?

Talk about socially destructive.

It is very worrying that unelected bankers are increasingly telling countries how to function, entirely in bankers interests. The whole Eurozone thing is so unhealthy, with national parliaments and populations being bullied and bypassed.

We are rapidly moving from democracy into bankrocracy.

Share this post


Link to post
Share on other sites

So what? We already have interest-only mortgages, which are effectively infinite duration as you don't pay back any of the principal.

If people can't pay the interest, they can't pay the interest, and the duration is irrelevant. If they want to push up house prices they'll have to start allowing buyers to pay less than the full interest and have the difference build up on the principal instead.

Heck, they could even have negative-interest mortgages where the bank pays the buyer and adds the cost to the mortgage.

The overarching debt-based, commercially issued money system forces the people as a whole continuously to borrow into existence their essential means of exchange, that is to rent their currency from the issuer-lenders, from the banking system.

The goal of the issuer-lenders is to maximise their rental income and to accumulate ever increasing real wealth and power.

Intergenerational mortgages are a novel tactic within this ongoing program but they are a mere detail of the bankers' overall strategy.

It is the money system itself that we need completely to reform, root and branch.

Edit: Split infinitive corrected.

Share this post


Link to post
Share on other sites

I only heard this in a chat room, and googling didn't reveal links. Maybe someone can do better?

But what I heard was Christine Lagarde (new head of the IMF) has suggested intergenerational mortgages. It was at Jackson Hole with Ben Bernanke.

Scary stuff indeed. Anyone with more info?

There is little in her speech to suggest this, certainly outside of the US:

(my bold)

http://www.aciforex....0110828_IMF.pdf

The United States

In the United States, policymakers must strike the right balance between reducing public debt and sustaining the recovery-especially by making a serious dent in long-term unemployment. A fair amount has been done to restore financial sector health, but house price declines continue to weaken household balance sheets. With falling house prices still holding down consumption and creating economic uncertainty, there is simply no room for half-measures or delay.

So the United States needs to move on two specific fronts. First-the nexus of fiscal consolidation and growth. At first blush, these challenges seem contradictory. But they are actually mutually reinforcing. Credible decisions on future consolidation- involving both revenue and expenditure-create space for policies that support growth and jobs today. At the same time, growth is necessary for fiscal credibility-after all, who will believe that commitments to cut spending can survive a lengthy stagnation with prolonged high unemployment and social dissatisfaction?

Second-halting the downward spiral of foreclosures, falling house prices and deteriorating household spending. This could involve more aggressive principal reduction programs for homeowners, stronger intervention by the government housing finance agencies, or steps to help homeowners take advantage of the low interest rate environment.

Edit: capitalisation

Share this post


Link to post
Share on other sites

So...

You are forced to have kids.

You are forcing your kids to take on your debt even before they are born.

You become beholden to your kids, and they beholden to you, because of the above.

It restricts thr ability to move freely.

Why don't they just nuke the planet? I mean, given a choice between doing what needs to be done re capitalism, banking and house prices they would clearly choose to nuke the planet in an either / or scenario.

T*ssers.

TMT... I assume you get it. You are far more senior on this forum than I could ever hope to be. But your servitude is foretold. As is that of any issue you should produce. A global financial system will come out of this debacle. It is no more a crash than I am an opera singer. It is just a brake in the record. It is a crash in real and practical terms for many people and families, but it is just a dab on the pedal of a system over which we have no control and are forced to participate in unless we wish to live ENTIRELY off grid. Intergenerational is just a smoke screen. The real agenda is for all mortgages to be international... in the sense that there is a single issuing global bank which is the "savours of us all" until those who don't see it coming, sense that they have been taken up the backside by a barge pole with no vaseline. The realisation that Vaseline is necessary will take another 20 years. In 19 years time vaseline will be taken off the supermarket shelves.

This is coming from a survivalist loon whoSTR'd in 2005 and went very rural to avoid the riots I thought would come in 2010 because of peak oil!... how wrong was I? :P

Share this post


Link to post
Share on other sites

Intergenerational cannot work.

You'd need the kids to be 18 to legally sign anything.

By that time most parents will be too old to be a good risk - and the kids will be too young + too risky.

Nothing more than an EA wet dream. Some half wit has finally worked out Excel and has found a way to 'solve' high house prices.

The other way is to invent a magic pill that makes you live till 200 - Bingo - 150 year mortgages.

The interest payments on a 25 mortgage are bad enough - do the sums.

But even a 'small' increase in payment terms to 30 years is painful - the monthly capital payment barely fall but the interest payments rocket.

f*ing nuts

Share this post


Link to post
Share on other sites

Bankers need more money supply, there's no surprise there. There's not enough debt.

If the monetary system was based on leaves, there wouldn't be enough leaves at some point for the bankers. The rate of production of leaves is finite, but the demand for leaves (i.e. money) can be infinite. There would be hoarding and deforestation by large leaf holders to perserve their holdings from dilution.

ahitch760e_small.jpg

Burn down the forests, again anyone?

Share this post


Link to post
Share on other sites

The trick, and I am guessing, if I was the elite, is to make the world go one way and use one monetary system and fully exhaust it. Whilst I go the other way and fully load up on the next item/instruments that will be the basis of the next monetary system for pennies on the dollar. Profit on the way up, and profit on the way down. Profit, Profit Profit.

Share this post


Link to post
Share on other sites

Intergenerational cannot work.

You'd need the kids to be 18 to legally sign anything.

By that time most parents will be too old to be a good risk - and the kids will be too young + too risky.

Let us suppose they lent your parents a million pounds and they paid off half. When they die, you could either sell the house and pay off the mortgage or continue with the repayments yourself. They are likely to put in stiff penalty clauses for early repayment.

The objective is to lend more capital. As always assets rise to reflect the capital available. The net result will be more debt yet exactly the same number of houses.

You could lend everyone a billion. So long as interest rates are at 0.0001% it is no problem making the interest payment. The principle could be on a thousand year schedule. Of course this is no different to renting from the bank since you will never own the asset.

Share this post


Link to post
Share on other sites

Evidence she has said this?

Her speech (full transcript above and elsewhere) clearly talks about debt forgiveness, which is the polar opposite.

Was this mentioned on a 'nutters' forum?

Share this post


Link to post
Share on other sites

Japan had intergenerational mortgages before their continual support of their zombie banking system....this really is the last roll of the dice...sadly, the hair of the dog from 2008 is wearing off, the end of the game is near and hangover fast approaches yet again as a new dawn beckons the flagging banking system tired eyes.

Share this post


Link to post
Share on other sites

Evidence she has said this?

Her speech (full transcript above and elsewhere) clearly talks about debt forgiveness, which is the polar opposite.

Was this mentioned on a 'nutters' forum?

no doubt they had a brain storming session.....entitled, how to get the rest of the old guard out of the banks with their bonuses unscathed.

Share this post


Link to post
Share on other sites

Intergenerational cannot work.

You'd need the kids to be 18 to legally sign anything.

By that time most parents will be too old to be a good risk - and the kids will be too young + too risky.

Nothing more than an EA wet dream. Some half wit has finally worked out Excel and has found a way to 'solve' high house prices.

The other way is to invent a magic pill that makes you live till 200 - Bingo - 150 year mortgages.

The interest payments on a 25 mortgage are bad enough - do the sums.

But even a 'small' increase in payment terms to 30 years is painful - the monthly capital payment barely fall but the interest payments rocket.

f*ing nuts

I imagine the bank claims against the house as an asset until the mortgage is paid off. Not sure what happens with negative equity though. This must be an issue in Japan. Wasn't it the idea behind only giving 25 year mortgages. So I guess Japan must have a different legal system.

Share this post


Link to post
Share on other sites

Intergenerational cannot work.

You'd need the kids to be 18 to legally sign anything.

By that time most parents will be too old to be a good risk - and the kids will be too young + too risky.

Nothing more than an EA wet dream. Some half wit has finally worked out Excel and has found a way to 'solve' high house prices.

The other way is to invent a magic pill that makes you live till 200 - Bingo - 150 year mortgages.

The interest payments on a 25 mortgage are bad enough - do the sums.

But even a 'small' increase in payment terms to 30 years is painful - the monthly capital payment barely fall but the interest payments rocket.

f*ing nuts

Since when did that stop the government 'socialising' the debt, to make the children pay for it? Did you sign any agreements for that? Have your unborn children?

Share this post


Link to post
Share on other sites

I only heard this in a chat room, and googling didn't reveal links. Maybe someone can do better?

But what I heard was Christine Lagarde (new head of the IMF) has suggested intergenerational mortgages. It was at Jackson Hole with Ben Bernanke.

Scary stuff indeed. Anyone with more info?

Makes sense to me; yet one more trick to prevent the banks admitting their insolvency. Kick the can down the road for 30 years - a brilliant idea.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 343 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.