'Seizures May Be Cities’ Last Hope in Mortgage Crisis'

Quote from Banjo:

Ken Bentsen, the executive vice president of the Securities Industry and Financial Markets Association, said the idea would almost certainly be challenged in court and would have a major impact on the local market.

“If the government has the ability to abrogate the contract at will and at the expense of the bond holder, the investor is going to do one of two things: require a tremendous premium for the risk they are incurring, or just not invest at all,” Mr. Bentsen said. “It would be a risk factor that would be impossible to underwrite.”
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While I think it's probably not going to happen, it's good to remember that you cannot get blood from a turnip--the debtors are broke.
 
Quote from Ricter:

People around the world, including the US, are (effectively) paying our government to borrow their money. So states and cities could create some "workfare" (and legit infrastructure) projects and take very low interest loans from the federal government to fund them, or simply take (demand?) more outright transfer payments, and the cities could be saved without reneging on grandma.
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You really have sh!t for brains don't you?

You see no problems with this?
 
Quote from jem:

We should let the banks fail before we interfere with contractual rights any further.

the constitution, sanctity of contract and rule of law is what allows out govt to be built.

Obama did not build that govt and no one else did without the constitution, the rule of law and sanctity of contract.

his bullshit with the gm bondholders was bad enough.
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+ 1

Where are Mittens ads on the GM govt takeover? now eminent domain to keep people in their houses. Are you serious, the govt can just break the law at will? How is the free market supposed to function when private investors have their deals broken illegally, by the govt! If you keep changing the rules mid game, no one is going to play.

Every period of economic expansion ends in contraction, that's how it works. People who don't see it coming or plan ahead or save, and depend on credit are going to suffer some changes to their lifestyle. Deal with it.
 
Quote from PiggyBank:

...Every period of economic expansion ends in contraction, that's how it works. People who don't see it coming or plan ahead or save, and depend on credit are going to suffer some changes to their lifestyle. Deal with it.
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Same goes for the moneylenders.
 
Quote from Ricter:

Same goes for the moneylenders.
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I was against the bailout from the beginning bud. Laissez-faire let the chips fall where they may, is the type of economy that I feel has the most productive potential. Also, it is the only economic environment that fits in a free society.. which the US is not.
 
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