A fix for the banks problem

draiochtanois

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Godge

What banks problem?
Whose pension funds?
Group or individual pension funds?

jmayo

draiochtanois wrote: »

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And what will the people who blow their pension funds do when they retire ?
Will they expect the state to give them a taxpayer funded pension ?

I love the way a lot of the solutions to this mess is to kick the can further down the road and forward the cost into the future.
As it is the cost for a lot of this mess is being transferred onto future generations and this is just another added way of doing that.

Pensions are going to be a looming disaster without making it worse.

For Forks Sake

draiochtanois wrote: »

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Draoicht Anois: Magic Now?

Not too far wrong there.

Sand

draiochtanois wrote: »

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The losers are the people. WTF would anyone want to sacrifice their late life financial security to improve the bank's balance sheet? Are the banks going to bail them out then? I doubt it.

draiochtanois

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chopper6

draiochtanois wrote: »

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But what difference does nageative equity make if you're not selling?

The house was bought for,say 500k five years ago,the buyer raised the money and they knew it was a 30 year mortage so they should have stress tested it for a rise in rates or a drop in income...what has changed now that it's "worth" a lot less?

If you're treating a house as a home and not an investment then it shouoldnt matter how much it's supposedly worth,no?

it seems to me that a bunch of people are looking to walk awy from a deal they made with the lender...a deal that nobody forced to make in teh first place.

creedp

chopper6 wrote: »

But what difference does nageative equity make if you're not selling?

This is the point but people need to make negative equity an important issue to see if they can wrangle a write-off. If the family in cork can get €200k plus written off their mortgage with apparently no strings attached why wouldn't everyone want to get in on the action? The banks won't care as its not their money ... roll on the 2nd round of recapitalisation.

chopper6

There should be no write-offs just because of alleged Negative Equity.

If you cant actually afford to pay then you should maybe renegotiate but being able to pay but are a little bit sick because your plans to turn a profit didnt work out should not be a valid reason.