Skip to comments.Iceland Forgives Mortgage Debt for the Population.
Posted on 04/14/2012 6:48:29 AM PDT by edcoil
his is awesome. It shows when the people DO STAND UP they have more power and win against the corrupt bankers and politicians of a country. Iceland is forgiving and erasing the mortgage debt of the population. They are putting the bankers and politicians on the "Bench of the Accused." Which means I assume they are putting them on trial for corruption.
(Excerpt) Read more at sherriequestioningall.blogspot.co.uk ...
Read the Chapter in Leviticus that talks about the once-in-a-lifetime Year of Jubilee in which all debts were forgiven in ancient Israel. Bottom line: the Almighty never intended for men to be permanently slaves to the company store.
This story seems to be fake,
You would think such a monumental event like this would be news around the world, but besides Youtube and a few blogs it's nowhere
>> the Almighty never intended for men to be permanently slaves to the company store.
The Almighty never intended for the profligate and lazy to borrow money they can’t or won’t repay, either.
That the “company store” owes men a living and a dwelling is a concept rooted in communism, not that of a God-fearing responsible free man.
Opus-couldn’t agree with you more. Problem is that at a very high level, involving millions of properties whose notes are completely bolluxed up...there may be little practical alternative.
The basis for Federal and State Gov’mt..the supervision of the order required to maintain the integrity of such transactions is being called into question. The very future of government and social fabric is predicated upon enforcement of contract laws in these instances-with the appropriate punitive consequences. Unfortunately, given the magnitude of individual involvement, it would require regional/state tribunals, operating for months/years to achieve.
The default to eliminate mortgage debt may very well happen if the involved bankers and powers that be perceive the nooses from the lampposts starting to swing near their their necks. Bernanke will of course reimburse the big banks under the table
However, it seems likely to me that attempting to maintain the present system without modification is likely to be the worst of all possible economic policies. It is the assumption we can keep kicking the can down the road forever. Which just means that when the inevitable crash comes, it will be even bigger.
I would dearly love to see some non-ideological discussion by economists of the least destructive way to get out of this mess. Haven’t seen any.
Iceland has gone Commie.
Yeah, those “corrupt” bankers who lent $$ to people thinking that they would honor their obligations and pay it back. What a bunch of sleazebags those bankers are! [/s]
Is that the real history of default like this? Some countries have defaulted and some creditors do rush back in. They see a potential creditor with nothing now owed and take the risk that the country won't default again. Sure, the rates might be astronomical, but it doesn't always stop creditors from taking the chance.
I used to work in finance, one of the funny things that would happen to those that declared bankruptcy (went through the filings legally) is that it didn't take long for credit offers to come pouring back in at an astronomical rate. So long as they had a job, some companies actually have a business model around taking that risk.
Obviously declaring everyone's mortgage forgiven is stupid and this is not what is happening, but it is worth noting that default doesn't necessarily mean a lack of credit going forward. The idea that there should be no risk to creditors has been a mistake the Europeans have been making for awhile now. Of course, we know why they are doing it - because their whole house of cards is doomed if reality were allowed to set in (they are all essentially bankrupt), but it is an interesting topic for debate nonetheless.
Yes, but it was already embedded into the society,
and could be corrected for
Who, however, would lend money,
knowing the loan was to be forgiven in one year?
Modern Commerce would grind to a halt,
well in advance of the Jubilee
This sort of thing has happened on a regional or stae level many times before. It’s the scale of it, as well as complicity on behalf of bad actors in the financial sector and regulatory agencies, that have made it a collapse scenario if not dealt with correctly.
Time healed it in Houston due to the oil bust, in Boston and California in the early nineties due to job loss, etc.
Time will make this worse as far as global economic repercussions.
Forgiveness of principal owed above and beyond a fair selling price as determined by comparable recent sales in the vicinty, only upon sale and taxable as income with a restriction to being eligible for such forgiveness only once in a lifetime would free things up more quickly and far more cheaply than has been the case.
The problem today is that the debt crisis is worldwide.
It shows when the people DO STAND UP they have more power and win against the corrupt bankers and politicians of a country. Iceland is forgiving and erasing the mortgage debt of the population. They are putting the bankers and politicians on the "Bench of the Accused." Which means I assume they are putting them on trial for corruption.This should thrill the FINOs in our midst. Shariah Lending for Everyone!
You start at the source, the trigger event, and work outward from there.
Fraud and corruption are the overriding problems. Addressing that takes a level of brutal honesty and willingness to face consequences that has not been in evidence thus far.
You mean the lenders are trying to get the money they loaned paid back? Somebody should occupy such A-holes to the Nth degree.
>Under most circumstances I would agree with you, but in Iceland’s case I believe there’s a much larger issue that relates to state-run banks and national currency considerations. Once it is determined that almost all of a country’s private mortgage debt is held by foreign interests, a lot of those principles go right out the window.
So it is OK to screw over people who lend in good faith if they happen to be foreigners? Brilliant.
That's called "Nationalization."
Geothermal heat for everyone!
Oh wait...never mind.