Mrcauser’s Weblog

Just another WordPress.com weblog

I would prefer debt forgiveness……

leave a comment »

Debt moratoriums would probably bankrupt the big banks.

Sounds like a plan!

But since the big banks  borrow at 0% interest and lend at between 4% and 29% little money would be lost except for their overhead. So they unemploy  a few thousand bankers to compensate.

Serve them right!

But I’m betting the government buys the rest of the junk mortgages and saves their ass from lawsuits which will kill them. If they don’t own this shit they can’t be sued.

And the Feds can’t be sued. The mortgages then either get paid off by investors buying the underlying assets, given away  or the houses get bulldozed.

Problem solved!

Accounting Identities – NYTimes.com

Oh, and widespread debt forgiveness (or inflating away some of the debt) would solve the problem.

But what we actually have is a climate in which it’s considered sensible to demand fiscal austerity from everyone; to reject unconventional monetary policy as unsound; and of course to denounce any help for debtors as morally reprehensible. So we’re in a world in which Very Serious People demand that debtors spend less than their income, but that nobody else spend more than their income.

And the slump goes on.

Advertisements

Written by mrcauser

November 1, 2010 at 5:25 pm

Posted in Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: