PeakOil is You
Debt moratorium or massive homelessness in the US?
Re: Debt moratorium or massive homelessness in the US?
by jlw61 » Tue 10 Jun 2008, 07:06:44
$this->bbcode_second_pass_quote('Serial_Worrier', 'T')he banks built a model based on the hope that evicted FBers wouldn't trash the home. I wouldn't count on that hope. Also are the banks going to pay for extra round-the-clock security to make sure the homes don't get trashed?
Years ago, trashing a foreclosed house was a great way to get in even worse trouble. Today, the McMansion kills your credit so bad that nobody cares what happens next. The banks, in their typical short sighted "how much can I make today" view of the world, have been simply doing the same thing they've done for years. For the most part, they are still reacting like there is a forclosure rate of under 1% and have yet to understand (or care) that they have created a monster.
They also understand that 24hr security is extremely expensive and that there is no good way out of the mess they made without "giving in" and admitting they caused the mess and spending lots of money to fix it. Many bank managers probably look at it as "it's not my money" and are just playing the old foreclosure game. They simply do not care what happens to the houses and are just collecting their paycheck until they are booted out when the FDIC closes the bank.
Remember, most of them are there simply there for the paycheck and have few marketable skills in the real economy.
When somebody makes a statement you don't understand, don't tell him he's crazy. Ask him what he means. -- Otto Harkaman, Space Viking
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jlw61 - Tar Sands
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Re: Debt moratorium or massive homelessness in the US?
by allenwrench » Tue 10 Jun 2008, 10:38:02
$this->bbcode_second_pass_quote('Captain_Meh', '"')Debt moratorium or massive homelessness in the US?"
IMO, neither. I predict another bailout, moral hazard be damned.
IMO, neither. I predict another bailout, moral hazard be damned.
Seems like such bailout would be too broad and would cover almost everything. The gov would see falling tax income yet be shelling out money as fast as they can magnetize silicone chips to create it.
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Re: Debt moratorium or massive homelessness in the US?
by allenwrench » Tue 10 Jun 2008, 10:42:16
$this->bbcode_second_pass_quote('nocar', '')$this->bbcode_second_pass_quote('', 'M')y mom is still alive and doing well. They went throught the whole WWII thing and ration coupons and the whole bit. Bottom line the world did not end. I grew up on stories of the great depression.
American always seem to think that the great depression was the worst period to be in. Then imagine being a civilian in Germany in WWII. Those were tough times, with bombs falling allover, and very little to eat, and all men being drafted. Still, the world did not end, there was no real Madmax scenario, and most civilians survived. WW1, and the depression in between with run-away inflation, were bad there too. Not all Germans liked Hitler and his ideas, but they got no exemption from bombs and hardship (rather the opposite since they were less likely to have good connections with the ruling Nazis.)
More recently, the Russians have had their savings snatched away more than once in various money reforms. Still no general chaos.
That is why I do not believe in a total breakdown of society due to Peak Oil. Although there will be lots of changes and adjustments that people have to make. And it is good to grow some food in a garden.
nocar
Though, in Russia if you complain you disappear.
I think people back then had a little more ethics than the generation of now. Or maybe it is just that gambling fever has taken over so many lives and polluted the normally respectable professions that were once looked upon as being beyond the corruption.
We used to look at a CPA's report as gospel. Now I look at it like a piece of dirty toilet paper.
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