Calif. City OK With Seizing Mortgages From Banks

Started by 11B4V, September 11, 2013, 01:15:27 PM

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Sheilbh

Quote from: mongers on September 11, 2013, 08:17:00 PM
Why is it insane?
From a British perspective - we've nothing like it and I can't imagine what possible benefit it could bring that would outweigh the costs.
Let's bomb Russia!

CountDeMoney

Quote from: Sheilbh on September 11, 2013, 08:23:08 PM
Quote from: mongers on September 11, 2013, 08:17:00 PM
Why is it insane?
From a British perspective - we've nothing like it and I can't imagine what possible benefit it could bring that would outweigh the costs.

The Bill of Rights only applies to the citizen's defense against government.  Being protected from corporations or banks in America doesn't increase shareholder value.  I mean, duh.

garbon

Quote from: CountDeMoney on September 11, 2013, 08:27:01 PM
Quote from: Sheilbh on September 11, 2013, 08:23:08 PM
Quote from: mongers on September 11, 2013, 08:17:00 PM
Why is it insane?
From a British perspective - we've nothing like it and I can't imagine what possible benefit it could bring that would outweigh the costs.

The Bill of Rights only applies to the citizen's defense against government.  Being protected from corporations or banks in America doesn't increase shareholder value.  I mean, duh.

Didn't we already learn recently that saying "shareholder value" is a weak gloss for what is really being said?
"I've never been quite sure what the point of a eunuch is, if truth be told. It seems to me they're only men with the useful bits cut off."

I drank because I wanted to drown my sorrows, but now the damned things have learned to swim.

Iormlund

Quote from: Sheilbh on September 11, 2013, 08:23:08 PM
Quote from: mongers on September 11, 2013, 08:17:00 PM
Why is it insane?
From a British perspective - we've nothing like it and I can't imagine what possible benefit it could bring that would outweigh the costs.

A non-recourse mortgage makes it much easier to start anew. There are hundreds of thousands, maybe millions of people in Spain who have been evicted or might be evicted and will still be liable to pay for decades. Seeing their earnings go to the banks only encourages these people not to work or do so illegally, which erodes the tax base and worsens worker conditions.

It also increases the risk banks take, which means higher interest rates and smaller loans. This should alleviate real estate bubbles.