What they are all missing is the fundamentals of capitalism. Consumption drives the captialisitic economy. So, some sort of debt cancellation HAS to happen. Whether it is a borrower bail out like the one being proposed above or a bank bail out like the one BofA is requesting, money freed up from debt will go back into hands of consumers to be put toward consumption and thereby reanimating the stagnant economy.

As unglam and undesireable a bail out sounds to us all, one cannot ignore the fundamentals of the American economy and that 70% of it is driven by consumption. So, as much as we want to teach foolish buyers and greedy banks a lesson, we can’t properly do it without scrapping capitalism.

It’s horrible, but like war, debt cancellation is great for business.

What they are all missing is the fundamentals of capitalism. Consumption drives the captialisitic economy. So, some sort of debt cancellation HAS to happen. Whether it is a borrower bail out like the one being proposed above or a bank bail out like the one BofA is requesting, money freed up from debt will go back into hands of consumers to be put toward consumption and thereby reanimating the stagnant economy.

As unglam and undesireable a bail out sounds to us all, one cannot ignore the fundamentals of the American economy and that 70% of it is driven by consumption. So, as much as we want to teach foolish buyers and greedy banks a lesson, we can’t properly do it without scrapping capitalism.

It’s horrible, but like war, debt cancellation is great for business.

What they are all missing is the fundamentals of capitalism. Consumption drives the captialisitic economy. So, some sort of debt cancellation HAS to happen. Whether it is a borrower bail out like the one being proposed above or a bank bail out like the one BofA is requesting, money freed up from debt will go back into hands of consumers to be put toward consumption and thereby reanimating the stagnant economy.

As unglam and undesireable a bail out sounds to us all, one cannot ignore the fundamentals of the American economy and that 70% of it is driven by consumption. So, as much as we want to teach foolish buyers and greedy banks a lesson, we can’t properly do it without scrapping capitalism.

It’s horrible, but like war, debt cancellation is great for business.

SDR, I think that the amount of wealth transfer to existing homeowners (through forgiven debt) will be close to that $1 trillion amount we’ve seen bandied about, but the pain will be split between taxpayers (=govt) and bond investors. Bond investors will be made to pay their part with some defaults, but mostly higher future inflation. Non-homeowning taxpayers who save are going to get…. a really bad deal.

I feel like it’s 1968 all over again, before everyone realized fully how much Johnson’s war and Great Society cost, and what that would do. The 1970’s were a lousy time to be responsible.

Patient renter in OC

SDR, I think that the amount of wealth transfer to existing homeowners (through forgiven debt) will be close to that $1 trillion amount we’ve seen bandied about, but the pain will be split between taxpayers (=govt) and bond investors. Bond investors will be made to pay their part with some defaults, but mostly higher future inflation. Non-homeowning taxpayers who save are going to get…. a really bad deal.

I feel like it’s 1968 all over again, before everyone realized fully how much Johnson’s war and Great Society cost, and what that would do. The 1970’s were a lousy time to be responsible.

Patient renter in OC

SDR, I think that the amount of wealth transfer to existing homeowners (through forgiven debt) will be close to that $1 trillion amount we've seen bandied about, but the pain will be split between taxpayers (=govt) and bond investors. Bond investors will be made to pay their part with some defaults, but mostly higher future inflation. Non-homeowning taxpayers who save are going to get…. a really bad deal.

I feel like it's 1968 all over again, before everyone realized fully how much Johnson's war and Great Society cost, and what that would do. The 1970's were a lousy time to be responsible.

Goddamit…That does it. I'm going to get my $350+ digital camera instead of the cheaper $250 one. There. I'm contributing to the GDP.

You think I can still open up a Heloc to finance this?

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

SDR, I think that the amount of wealth transfer to existing homeowners (through forgiven debt) will be close to that $1 trillion amount we've seen bandied about, but the pain will be split between taxpayers (=govt) and bond investors. Bond investors will be made to pay their part with some defaults, but mostly higher future inflation. Non-homeowning taxpayers who save are going to get…. a really bad deal.

I feel like it's 1968 all over again, before everyone realized fully how much Johnson's war and Great Society cost, and what that would do. The 1970's were a lousy time to be responsible.

Goddamit…That does it. I'm going to get my $350+ digital camera instead of the cheaper $250 one. There. I'm contributing to the GDP.

You think I can still open up a Heloc to finance this?

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!