Ted Rall for July 30, 2010

Sadly, the most banks don’t really want to foreclose on most homes – the market is so low the houses will just sit there, and probably be vandalized.

Seems to me a better plan would be to work out some sort of payment plan until Obama and the DEMS can get the economy working again.

But, if the GOP gains in November, well then just forget it about it we, and the economy will be s—-d.

Just giving folks their homes back and writing off the mortgages seems like a humane solution.

You can’t increase the import tax. If we make it harder for China to sell us their cheaply produced junk, they will come knocking on our door with a bill for our debt. Last I checked, China and Japan combined own 44% of our debt. There is no way we can pay that.

Well, then, they can write off our debt too.

Considering that the “value” of any kind of currency is just a big fiction that everyone has agreed on, the whole world could simply decide to junk the whole thing and start over. Problem solved.

^ First we’ll get rid of the lawyers.

@human - Unemployment spending is a drop in the bucket and an Economic Stimulator especially compared to War deficit spending which isn’t paid for. The portion of the bill that was accounted for (the aid for teachers) was junked and we just approved more blank check spending for a war effort draining our imaginary future coffers by the day. If we’re really serious about our debt problem we need to stop the wars or pare back significantly. Blowing up and rebuilding other countries isn’t an economically sound way to rebuild our own flailing economy. We can’t just stop teaching… our children will continue to fall behind in a globally competitive marketplace.

One thing I’ve never understood about mortgage foreclosures: If the bank takes your house, why aren’t they required to give back they money you have paid for it? Or even some portion of it?

“Just giving folks their homes back and writing off the mortgages seems like a humane solution.”

“Considering that the “value” of any kind of currency is just a big fiction that everyone has agreed on, the whole world could simply decide to junk the whole thing and start over. Problem solved.”

I’m sorry but am I in an Ayn Rand novel here? Let’s just forego with the entire concept of capital gains. I’m sure that won’t have any negative impact on innovation and improving our quality of life.

“Seems to me a better plan would be to work out some sort of payment plan until Obama and the DEMS can get the economy working again.”

Ah. Proof once again that ignorance truly is bliss. I would like to point out that all indicators show the recession as starting in late 2007 to early 2008. Right after the Dems took control of the Congress in the 110th Congress. Now, cetaris paribus, if the only change is the leadership then why would more of the same turn it around?

Seriously. The Dems take majority in Jan, 2007 and the economy tanks starting in late October, 2007. Am I the only one who sees the connective tissue here? Collectivist economic policies are fail people. You don’t get a job from poor people and taxing those with wealth, instead of allowing them to free up their money for investment makes no sense.

And don’t even bother with they “they are hoarding it” malarky. Those with wealth do not sit on it. They invest it. In markets. In start ups. In anything that will make them more money.

And as a result more people have jobs, more people make money, less people are unemployed.

The plain and simple fact that all the stimulus money has done nothing should prove this but no, you will all sit here and cry foul of those who have wealth and demand they are taxed higher.

Which will only force them to leave the country as they did Europe. Anyone else care to postulate why George Soros moved his HQ to the US? I’m sure it had nothing to do with the friendly tax rates.

Face it folks. Obama is fail. Both he and Reagan inherrited a horrible economy yet 17 months after Reagan got his economic policy in place the economy went skyrocketing. It’s now 18 months after Obama took over. Are we any better?

Let the troll, neo-con and other lack of tolerance commence.

Capitalism is caveman mentality. Come back in a few centuries and you won’t find it.

“Seriously. The Dems take majority in Jan, 2007 and the economy tanks starting in late October, 2007. Am I the only one who sees the connective tissue here?”

What policies changed in the span of less than a single year to cause the economy to collapse suddenly and without… say… the 6+ years without PAYGO, Cupcake?

Lenders love to go for the “assumed” interest of the length of your loan rather than principle first. It’s how they make their money.

At least with the credit card bill past last year when paying off a credit card they have to apply the payment to the highest interest first (e.g. a cash advance).

@Jade: It’s only when you pay more than the minimum payment that the extra amount goes to the higher interest rate balance. The minimum payment amount still goes to the lower rate balance. So always try to throw in something extra if you can.

Fair enough, charlie, but what if you have paid a substantial amount in equity? What about your down payment? If you default 5 years from the end of your mortgage rather than 5 years from the beginning, do they have to compensate you before kicking you out?

Want some reality….

Do not anguish over debt…… have yourself eliminated, because the turth shall set you FREE.

People here have been abused in many ways by.. those foolish enough to believe that they can over power, control and hurt others…

These abusers will continue to abuse until they are STOPPED……

So until then a persons only way to be FREE of this societies BULLSHIT… IS TO BE ELIMINATED!

That is why you sign about a hundred papers upon closing a house, fritzoid. Banks don’t want your house, they want your money…it’s only fair that they keep the money for the hassle you’ve now put them through of having to hold on to that non-liquid asset. Besides, if you never paid off the house, all you were doing was renting, really. So you are not out that money in terms of value.

But, I’m with SuperGriz….let’s give everyone free homes and have the government pay for them. I’m with sirrom, sirrom, too…working hard and keeping things is overrated. No more private property! Let’s give it all over to people like….well…people like, um….

Sirromsirrrom, I’m having trouble here, who exactly are we supposed to give the reins to?

HabaneroBuck

“who exactly are we supposed to give the reins to?”

socialism… Or better yet, Communism.

The great falsehood of American political thought is that capitalism and democracy are somehow interchangeable. In fact, they are diametrically opposed. The concept of ownership poisons everything.

What happens if a country can’t pay its debt?

Charlie / fritzoid: Foreclosure could occur even if there is equity in the property if the owner was irrational and just refuses to make payment. Then foreclosure proceedings are initiated. But before the property is taken over the property is put into mortgage sale at which time anyone can bid. The financial institution would have a reserve bid of the amount owing. If the property sold for more than was owed, the previous owner gets the equity. More likely, the previous owner sees the light and pays up.

“Arm the unemployed.”

Then the “owners” would have the perfect excuse to send in their military and police, and mow us all down, thereby making the country safe for oligarchical capitalism to triumph. Better, rather, for them to brutally massacre defenseless protesters, who would then gain martyrdom status. That’s how you get a revolution going.

It’s not always force of arms that wins (cf. Gandhi).

Gandhi was assassinated … by a “lone gunman”.

The pesky buggers get into everything.

“making the country safe for oligarchical capitalism to triumph.”

Day late and a dollar short…

Gandhi was assassinated … by a “lone gunman”.

Didn’t I mention martyrdom? He won that war anyway, even if posthumously.