|Hittin' The Web with the Allman Brothers Band Forum|
You are not logged in
(1644 all sites)
| posted on 2/21/2009 at 02:22 PM|
|Charlie Rose Interview on Economic Actions. Fact is there are NO easy remedies or simple solutions. We are paying for greed and extreme imbalances of power which have been embedded for decades. btw, Roubini is brilliant and has been warning about this situation for years while so many other supposed leaders buried their heads.|
[Edited on 2/21/2009 by CEEJ]
Walk True, Walk Tall, Walk Together
(7958 all sites)
| posted on 2/21/2009 at 04:05 PM|
|Nice to see you here Erik. I've been listening to Nouriel Roubini as well, and agree with some of his outlook. I'm no financial genius, but I see one problem with his concept of "face value debt reduction".|
The reason home values are dropping and people are upside-down in their mortgages is basic supply & demand. Money policies were too loose, permitting too many homes to be built for people who could not afford them. The insane low interest and loose money policies of the Fed permitted all this bad behavior to take place. All home values inflated during the period, but now all are falling as the market seeks to correct the over-supply and over-value.
The problem with his plan as explained is that this has happened to everyone in America. Virtually all of us have lost value or equity in our homes. But something like 90% are still paying their mortgages, on time, at the original values. If he thinks that those people are going to continue to pay at their full values, while at the same time subsidizing the others who get the benefits of new lower mortgages, then he's gotta be kidding.
So what is he proposing? That all mortgages be refinanced at lower levels? He doesn't say, but on the surfaced that seems completely impractical. If he thinks the majority will continue to pay at their original deal while at the same time paying taxes to fund adjustments for those who weren't intelligent enough to understand the mortgages they were signing, he's not taking into account the anger that will generate.
Obamacare: To insure the uninsured, we first make the insured
uninsured and then make them pay more to be insured again,
so the original uninsured can be insured for free.
Terms of Service
|The ALLMAN BROTHERS BAND name, The ALLMAN BROTHERS name, likenesses, logos, mushroom design and peach truck are all registered trademarks of THE ABB MERCHANDISING CO., INC. whose rights are specifically reserved. Any artwork, visual, or audio representations used on this web site CONTAINING ANY REGISTERED TRADEMARKS are under license from The ABB MERCHANDISING CO., INC. A REVOCABLE, GRATIS LICENSE IS GRANTED TO ALL REGISTERED PEACH CORP MEMBERS FOR The DOWNLOADING OF ONE COPY FOR PERSONAL USE ONLY. ANY DISTRIBUTION OR REPRODUCTION OF THE TRADEMARKS CONTAINED HEREIN ARE PROHIBITED AND ARE SPECIFICALLY RESERVED BY THE ABB MERCHANDISING CO.,INC.