IHT: Fed to pump another $1 trillion into U.S. economy

Christian Graus

At what point will they have pumped enough money into the economy to pay off everyone's mortgages ? I mean, if people owned their homes, that would fix a core issue, and then give them more money to spend, right ? not saying this is wise, just perhaps MORE wise than what is going on right now....

Christian Graus Driven to the arms of OSX by Vista.

Ilion

Did this help the situation in Weimar Germany? Or did it make it worse? Did this help the situation in '70s USA, or did it make it worse?

Christian Graus

Hey, I didn't say I agree with the bailout in *any* form, I'm just saying, if they must spend the money, why not give it to the people who are actually hurting ? It sounds like it will get to the point where that would have been cheaper....

Christian Graus Driven to the arms of OSX by Vista.

_Damian S_

I asked the same question here... what is the outstanding amount of all residential (principal place) mortgages? Could we just pay them off??

Knowledge is knowing that the tomato is a fruit. Wisdom is not putting it in fruit salad!! Booger Mobile - Camp Quality esCarpade 2010

Lost User

_Damian S_ wrote:

Could we just pay them off??

We could but if the government paid off our mortgage we'd probably sell the house, take out another mortgage of similar value because we can afford to service it and buy a house about twice as expensive as our current house. House prices would go through the roof again, real estate agents, mortgage brokers etc would make a fortune and the debt would remain

Oakman

_Damian S_ wrote:

Could we just pay them off??

If I remember correctly, Zep explained that the problem isn't the mortgages themselves, it's the fact that they have been leveraged by Credit Default Swaps so that each one has now been valued at up to 60 time the face value of the mortage.

Jon Smith & Wesson: The original point and click interface

Christian Graus

So the problem is that the system is not self policing and needs oversight ?

Christian Graus Driven to the arms of OSX by Vista.

Christian Graus

Perhaps the offer is made to pay out a mortgage only on the basis that the person in question pays back the money before taking out any other mortage, for life ?

Christian Graus Driven to the arms of OSX by Vista.

_Damian S_

Fair point... the people wouldn't be content with what they had, they would try to leverage into a bigger, better property... Didn't think of that... (of course, didn't put a lot of thought into the whole scenario, as I believe it's incredibly unlikely to happen).

Knowledge is knowing that the tomato is a fruit. Wisdom is not putting it in fruit salad!! Booger Mobile - Camp Quality esCarpade 2010

_Damian S_

Not a bad idea - or, people who take up the mortgage payout offer basically assign that portion of their house to the govt, and pay them that percentage of the value of the home when it's sold - eg: if a $100K mortgage on a $400K property, the bailed out mortage holder pays the govt 25$ of the sale price of the home... so if the house later sells for $500K, the govt gets $125K.

Knowledge is knowing that the tomato is a fruit. Wisdom is not putting it in fruit salad!! Booger Mobile - Camp Quality esCarpade 2010

_Damian S_

Yeah, that's the problem you guys are having... Over here, we are just having your run of the mill crisis caused by the US and EU financial systems completely turning to crap... :laugh:

Knowledge is knowing that the tomato is a fruit. Wisdom is not putting it in fruit salad!! Booger Mobile - Camp Quality esCarpade 2010

Lost User

Christian Graus wrote:

Perhaps the offer is made to pay out a mortgage only on the basis that the person in question pays back the money before taking out any other mortage, for life ?

But then the debt essentially remains its just transferred from the original issuer of the mortgage to the government and people could still sell the house and take that money overseas. I think the idea of payout peoples mortgages will never work. You've said recently that you no longer have a mortgage. Thats no doubt largely the result of hard work. How would you feel if Joe Bogan down the street who'd only ever made the minimum repayments on his mortgage had his debt paid out free of charge?

Lost User

_Damian S_ wrote:

Not a bad idea - or, people who take up the mortgage payout offer basically assign that portion of their house to the govt, and pay them that percentage of the value of the home when it's sold - eg: if a $100K mortgage on a $400K property, the bailed out mortage holder pays the govt 25$ of the sale price of the home... so if the house later sells for $500K, the govt gets $125K.

That type of finance is currently available. See EFM[^]

_Damian S_

The same way I feel about my hard earned tax dollars being thrown down the toilet by Krudd and his Krew... but if they are going to do it, at least they could do something that may actually help... Although I'd rather they used it for something like FTTN across the country...

Knowledge is knowing that the tomato is a fruit. Wisdom is not putting it in fruit salad!! Booger Mobile - Camp Quality esCarpade 2010

Ilion

Christian Graus wrote:

Hey, I didn't say I agree with the bailout in *any* form, I'm just saying, if they must spend the money, why not give it to the people who are actually hurting ? It sounds like it will get to the point where that would have been cheaper....

There is no magic. Anywhere.

Lost User

You are quite right. I recall Zep's observations on the CDS problem. However, these two links are likely to cause you scratch your head, one of them in some disbelief ... 1. Those ever so secretive 144A equity securities and the damning UCLA Law Review Vol 56 p 409 of 2008[^] Whole report via the download link 2. Top Fannie Mae Executives Each Get $1M Retention Bonuses[^]

Christian Graus

Josh Gray wrote:

How would you feel if Joe Bogan down the street who'd only ever made the minimum repayments on his mortgage had his debt paid out free of charge?

Like I said, I am not in favour of any kind of bailout. I'm just saying, if they *must* spend the money, then they should do it in a way that actually helps the poor. As to how I'd feel, I'd feel like I wish I had kept my mortgage. I'd expect if such a plan was created, there'd be a run of people like me trying to create new mortgages on our homes.

Christian Graus Driven to the arms of OSX by Vista.

Christian Graus

Probably.

Christian Graus Driven to the arms of OSX by Vista.

Lost User

_Damian S_ wrote:

The same way I feel about my hard earned tax dollars being thrown down the toilet by Krudd and his Krew... but if they are going to do it, at least they could do something that may actually help...

Fucking Rudd is a useless little pandering to the ignorant masses qld tool and he didnt even stimulate my package

Christian Graus

WE tried to go out for dinner last night, and everywhere was packed. Donna suddenly realised why. She leans forward and whispers to me, 'Rudd money'. Not that we get any, of course.

Christian Graus Driven to the arms of OSX by Vista.