strategic default on mortgage

MadsL

donegal_road wrote: »

definitely one of the top 3 scams. Both NAMA and DDDA have the same executive sponsors – the Galway Tent brigade. In fact NAMA is the new Galway Tent, Bankers, Developers, Politicians all in each others pockets. Owned by the Taxpayer, for the benefit of the elite. Previously protected by FF, now protected by FG/Labour.

It is one of the most secretive state organisations [/B]and is specifically excluded from the Freedom of Information Act.[/B]

It is 51% privately owned.

Yeah, gives me the shivers too.

Femme_Fatale

bringupthebook wrote: »

Look we all caused this mess.

Most certainly not all equally though.

galwayrush

Potatoeman wrote: »

It keeps property out of the market so its an artificial bottom. It reduces the housing stock artifically so anyone buying when its still running will pay more for property.

It also pays certain bust developers extremely well to run their failed companies and sell at a loss . Builders not in NAMA obviously can't compete against this .

NuckingFacker

Femme_Fatale wrote: »

Most certainly not all equally though.

Agreed. I've no loans. Did I cause the mess? If I did, I missed the "how" bit. Very much agree on the Nama angle. An unholy public private alliance if ever there was one - the collapse of communism in the USSR is the only equivalent transfer of wealth I can think of to compare it to.

bringupthebook

Femme_Fatale wrote: »

Most certainly not all equally though.

Oh yes I agree. When I say we all created this mess I mean on some level (obviously there are exceptions). I didnt buy a house in the boom - luckily we had bought many years before. We have a smallish mortgage that we can pay and are both in full time employment. But I paid boom time prices for hotels, meals out etc so i consider that I helped fuel the false economy that we lived in.

NuckingFacker

NuckingFacker wrote: »

Otherwise, it's some digits on a notional balance sheet pretty much "plucked out of their ar5e"

A debt once drawn down is as real as the cash I have in my current account.

A quick look at the Bank of Ireland financial statements as at the end of 2012 shows Loans and advances to customers and other banks of 22,729,118 and money owed to other banks, depositors and bondholders of 22,133,978,000

If the people who owe the bank money default and pay back say 50% of the money owed how do you propose the Bank of Ireland pay back the depositors and bondholders?

Potatoeman

NuckingFacker wrote: »

Again, a lot of people really do not have a clue as to how a bank creates a mortgage. You didn't borrow money, you agreed to pay back an amount of money. An amount that didn't actually exist in the first place and was purely notional. It becomes an amount of money as you actually go earn it and hand it to the bank. Otherwise, it's some digits on a notional balance sheet pretty much "plucked out of their ar5e" - have a google of "how banks create money" for a better description of how it works in practice.:)

It doesnt change the fact that the money was borrowed and spent. You are free to question the monitory system but perhaps this is something people should have done before signing the contract.

Fighting Irish

Look after yourself i say