3 ms·
It’s not the first time this happened. Houses lose desirability due to jobs moving out of town, crime rising, and so on. Buying an overpriced house shouldn’t gu
by forgotmyoldname 5y ago
It’s not the first time this happened. Houses lose desirability due to jobs moving out of town, crime rising, and so on. Buying an overpriced house shouldn’t guarantee you a solid return in the future.
We’re at a point where we’d rather Bob secure his “investment” while younger generations can’t afford a home to live in.
- selcuka 5y agoThat's a bit out of context. My comment was a reply to: > We all need a place to live but we all didn't take a risk in taking out a mortgage like Bob did. My point is it wasn't necessarily a risk Bob has voluntarily taken. I'm not saying that we shouldn't do something to fix this but we shouldn't cause Bob to go bankrupt while trying to help younger generations as Bob may not be the opportunist here.
- salawat 5y agoCorrect. The bank, and the seller are. The seller has his money already. The bank created money out of nowhere to service that mortgage. To my point of view, I see exactly where the haircut makes the most sense.
- selcuka 5y ago> The bank created money out of nowhere This is the part most people don't know or understand. We should fix the banking system first. Only one entity should be able to print money, not all banks.
- montblanc 5y agoOne man's debt is another's asset. If the banks don't collect their mortgages they might collapse. Will I trust a bank to save my money if I knew their balance sheet is negative?
- vineyardmike 5y agoit is negative. Real banks run negative in practice (in USA).