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March 31, 2010 at 9:13 AM #534604March 31, 2010 at 9:15 AM #533667
briansd1
Guest[quote=FormerSanDiegan]
I gave up making sense of it when in a single thread there was a point made that our economy country runs on debt and a point made that debt repayment adds nothing to the economy.
I figure that I am simply too dense to understand.[/quote]
FSD, look at the context of my responses.
I never said that debt repayment adds nothing to the economy. I was responding to a comment by jpinpb who suggested that if people don’t pay their mortgages and spend the money they save, they are helping immediately the economy.
In this situation, it’s just coincidental that the more money spent up front, now, the bigger the immediate boost to the economy. It’s a short term boost.
I’m not saying that debt payment avoidance should be economic policy either. As you rightly pointed out, in the longer term that would be a problem. Banks would lack capital to lend and people who relied on the money would have to cut back.
March 31, 2010 at 9:15 AM #533796Guest[quote=FormerSanDiegan]
I gave up making sense of it when in a single thread there was a point made that our economy country runs on debt and a point made that debt repayment adds nothing to the economy.
I figure that I am simply too dense to understand.[/quote]
FSD, look at the context of my responses.
I never said that debt repayment adds nothing to the economy. I was responding to a comment by jpinpb who suggested that if people don’t pay their mortgages and spend the money they save, they are helping immediately the economy.
In this situation, it’s just coincidental that the more money spent up front, now, the bigger the immediate boost to the economy. It’s a short term boost.
I’m not saying that debt payment avoidance should be economic policy either. As you rightly pointed out, in the longer term that would be a problem. Banks would lack capital to lend and people who relied on the money would have to cut back.
March 31, 2010 at 9:15 AM #534249Guest[quote=FormerSanDiegan]
I gave up making sense of it when in a single thread there was a point made that our economy country runs on debt and a point made that debt repayment adds nothing to the economy.
I figure that I am simply too dense to understand.[/quote]
FSD, look at the context of my responses.
I never said that debt repayment adds nothing to the economy. I was responding to a comment by jpinpb who suggested that if people don’t pay their mortgages and spend the money they save, they are helping immediately the economy.
In this situation, it’s just coincidental that the more money spent up front, now, the bigger the immediate boost to the economy. It’s a short term boost.
I’m not saying that debt payment avoidance should be economic policy either. As you rightly pointed out, in the longer term that would be a problem. Banks would lack capital to lend and people who relied on the money would have to cut back.
March 31, 2010 at 9:15 AM #534347Guest[quote=FormerSanDiegan]
I gave up making sense of it when in a single thread there was a point made that our economy country runs on debt and a point made that debt repayment adds nothing to the economy.
I figure that I am simply too dense to understand.[/quote]
FSD, look at the context of my responses.
I never said that debt repayment adds nothing to the economy. I was responding to a comment by jpinpb who suggested that if people don’t pay their mortgages and spend the money they save, they are helping immediately the economy.
In this situation, it’s just coincidental that the more money spent up front, now, the bigger the immediate boost to the economy. It’s a short term boost.
I’m not saying that debt payment avoidance should be economic policy either. As you rightly pointed out, in the longer term that would be a problem. Banks would lack capital to lend and people who relied on the money would have to cut back.
March 31, 2010 at 9:15 AM #534609Guest[quote=FormerSanDiegan]
I gave up making sense of it when in a single thread there was a point made that our economy country runs on debt and a point made that debt repayment adds nothing to the economy.
I figure that I am simply too dense to understand.[/quote]
FSD, look at the context of my responses.
I never said that debt repayment adds nothing to the economy. I was responding to a comment by jpinpb who suggested that if people don’t pay their mortgages and spend the money they save, they are helping immediately the economy.
In this situation, it’s just coincidental that the more money spent up front, now, the bigger the immediate boost to the economy. It’s a short term boost.
I’m not saying that debt payment avoidance should be economic policy either. As you rightly pointed out, in the longer term that would be a problem. Banks would lack capital to lend and people who relied on the money would have to cut back.
March 31, 2010 at 9:23 AM #533673Guest[quote=SD Realtor] I am okay with people walking away from homes and loans. If people want to stop paying and feel good about living for free then that is their prerogative. Why stop there though. The same opportunity is available with credit cards as well. [/quote]
Yes, credit card loans and auto loans will be hit also.
Roubini identified this trend.
Credit card are unsecured. When people stop paying, there’s nothing the banks can do.
Banks know that so that’s why they are lowering credit lines and canceling unused account to stop borrowers from maxing their cards and walking.
As far as auto loans are concerned, the loan to value was too great and the terms too long. As the cars get older, we’ll see a significant number of drivers turn in the keys to their cars.
March 31, 2010 at 9:23 AM #533801Guest[quote=SD Realtor] I am okay with people walking away from homes and loans. If people want to stop paying and feel good about living for free then that is their prerogative. Why stop there though. The same opportunity is available with credit cards as well. [/quote]
Yes, credit card loans and auto loans will be hit also.
Roubini identified this trend.
Credit card are unsecured. When people stop paying, there’s nothing the banks can do.
Banks know that so that’s why they are lowering credit lines and canceling unused account to stop borrowers from maxing their cards and walking.
As far as auto loans are concerned, the loan to value was too great and the terms too long. As the cars get older, we’ll see a significant number of drivers turn in the keys to their cars.
March 31, 2010 at 9:23 AM #534254Guest[quote=SD Realtor] I am okay with people walking away from homes and loans. If people want to stop paying and feel good about living for free then that is their prerogative. Why stop there though. The same opportunity is available with credit cards as well. [/quote]
Yes, credit card loans and auto loans will be hit also.
Roubini identified this trend.
Credit card are unsecured. When people stop paying, there’s nothing the banks can do.
Banks know that so that’s why they are lowering credit lines and canceling unused account to stop borrowers from maxing their cards and walking.
As far as auto loans are concerned, the loan to value was too great and the terms too long. As the cars get older, we’ll see a significant number of drivers turn in the keys to their cars.
March 31, 2010 at 9:23 AM #534352Guest[quote=SD Realtor] I am okay with people walking away from homes and loans. If people want to stop paying and feel good about living for free then that is their prerogative. Why stop there though. The same opportunity is available with credit cards as well. [/quote]
Yes, credit card loans and auto loans will be hit also.
Roubini identified this trend.
Credit card are unsecured. When people stop paying, there’s nothing the banks can do.
Banks know that so that’s why they are lowering credit lines and canceling unused account to stop borrowers from maxing their cards and walking.
As far as auto loans are concerned, the loan to value was too great and the terms too long. As the cars get older, we’ll see a significant number of drivers turn in the keys to their cars.
March 31, 2010 at 9:23 AM #534614Guest[quote=SD Realtor] I am okay with people walking away from homes and loans. If people want to stop paying and feel good about living for free then that is their prerogative. Why stop there though. The same opportunity is available with credit cards as well. [/quote]
Yes, credit card loans and auto loans will be hit also.
Roubini identified this trend.
Credit card are unsecured. When people stop paying, there’s nothing the banks can do.
Banks know that so that’s why they are lowering credit lines and canceling unused account to stop borrowers from maxing their cards and walking.
As far as auto loans are concerned, the loan to value was too great and the terms too long. As the cars get older, we’ll see a significant number of drivers turn in the keys to their cars.
March 31, 2010 at 9:23 AM #533678Arraya
Participant[quote=Russell][quote=briansd1][quote=SD Realtor]
You don’t get it. I am not berating Bill the deadbeat for walking on his loan. I am berating him for not leaving his home. Same with you or anyone else who is living in a home for free because THEY made the initial mistake. All I ask is that you move out and live somewhere you can afford? What is wrong with that?[/quote]What’s the point of moving out if the bank won’t foreclose?
As long as the bank doesn’t foreclose, that house cannot be sold to anyone else at a lower price.[/quote]
I kind of don’t get that either, he is an enabled deadbeat not a saint.I do agree that it’s the enabling that is at the core of it…taking human nature into the equation.[/quote]
Yes, now bill will always expect free rent and it’s a slippery slope from there. Next thing you know he will be expecting free food.
We really need our social manipulators to whip us into shape or people will turn into communists.
March 31, 2010 at 9:23 AM #533806Participant[quote=Russell][quote=briansd1][quote=SD Realtor]
You don’t get it. I am not berating Bill the deadbeat for walking on his loan. I am berating him for not leaving his home. Same with you or anyone else who is living in a home for free because THEY made the initial mistake. All I ask is that you move out and live somewhere you can afford? What is wrong with that?[/quote]What’s the point of moving out if the bank won’t foreclose?
As long as the bank doesn’t foreclose, that house cannot be sold to anyone else at a lower price.[/quote]
I kind of don’t get that either, he is an enabled deadbeat not a saint.I do agree that it’s the enabling that is at the core of it…taking human nature into the equation.[/quote]
Yes, now bill will always expect free rent and it’s a slippery slope from there. Next thing you know he will be expecting free food.
We really need our social manipulators to whip us into shape or people will turn into communists.
March 31, 2010 at 9:23 AM #534259Participant[quote=Russell][quote=briansd1][quote=SD Realtor]
You don’t get it. I am not berating Bill the deadbeat for walking on his loan. I am berating him for not leaving his home. Same with you or anyone else who is living in a home for free because THEY made the initial mistake. All I ask is that you move out and live somewhere you can afford? What is wrong with that?[/quote]What’s the point of moving out if the bank won’t foreclose?
As long as the bank doesn’t foreclose, that house cannot be sold to anyone else at a lower price.[/quote]
I kind of don’t get that either, he is an enabled deadbeat not a saint.I do agree that it’s the enabling that is at the core of it…taking human nature into the equation.[/quote]
Yes, now bill will always expect free rent and it’s a slippery slope from there. Next thing you know he will be expecting free food.
We really need our social manipulators to whip us into shape or people will turn into communists.
March 31, 2010 at 9:23 AM #534357Participant[quote=Russell][quote=briansd1][quote=SD Realtor]
You don’t get it. I am not berating Bill the deadbeat for walking on his loan. I am berating him for not leaving his home. Same with you or anyone else who is living in a home for free because THEY made the initial mistake. All I ask is that you move out and live somewhere you can afford? What is wrong with that?[/quote]What’s the point of moving out if the bank won’t foreclose?
As long as the bank doesn’t foreclose, that house cannot be sold to anyone else at a lower price.[/quote]
I kind of don’t get that either, he is an enabled deadbeat not a saint.I do agree that it’s the enabling that is at the core of it…taking human nature into the equation.[/quote]
Yes, now bill will always expect free rent and it’s a slippery slope from there. Next thing you know he will be expecting free food.
We really need our social manipulators to whip us into shape or people will turn into communists.
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