Saturday, October 16, 2010

Debts to be written off

Iceland Pension Funds to Block $2 Billion Debt Relief Proposal

Iceland’s pension funds, which hold the bonds behind most of the country’s mortgage debt, will try to block proposals to forgive as much as $2 billion in bad loans that the government says it is considering. A group that represents households demanding debt relief says lenders should write off up to 220 billion kronur ($1.99 billion) in mortgage loans to help the 39 percent of homeowners who are technically insolvent. The government this week said it may back the proposal.

Posted by devo @ 11:01 AM (1022 views)
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3 thoughts on “Debts to be written off

  • And that boys and girls, was the day that the term ‘moral hazard’ changed its meaning to ‘the hazard of being moral’.

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  • general congreve says:

    @1 – Indeed, bailing out the feckless to prop up the banks at the expense of the prudent. C*nts.

    Pretty sure this will happen here too in good time.

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  • It should be up to the lenders whether they default, if they do, they should be made bankrupt, get a horrible credit rating, and the lenders should face the consequences.

    The government should not compensate investors, given they can’t afford to accumulate more debt and the lenders have to learn that lending money to poor credit risks is their risk alone!

    The promise of state bailouts is one of the reason why banks have been so negligent, this must stop!

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