The Banks Master Plan

[Wallace]

peilthetraveler, aren't you in effect saying the banks shorted gold when it hit $650 -
and are still holding

there's said to be 20 million vacant/for sale homes in the US

 

[JeffUSA]

Not quite the master plan but interesting analysis.

It appears to me that the banks are really playing accounting games at this point. They are hiding the losses from these houses on their books.

Remember Federal laws require banks to have a certain amount of capital or the feds will shut them down. So the banks will keep these houses and unload them when they can.

 

[peilthetraveler]

Quote from crgarcia:

There's no master plan.
In fact banks have no plans at all.

You forgot: What will happen when they try to sell all those homes some years down the road, when homes need expensive reconditioning due to all the time been unused?

Hyperinflation wipes out any debt owed on those houses so after hyperinflation the homes are owned free & clear by the banks. Then they just sell these homes "as is" if they dont want to fix it up themselves. Or they just do a few inexpensive cosmetic repairs (new paint, carpet, landscaping) and still sell it as is and get near top dollar.

 

[peilthetraveler]

Quote from BarneyFrank:

who do you see as the banks, the big guys running them or the shareholders? yes most likely the big guys are also shareholders, but they can sit on it forever, cause that's just pennies compared to what they make

Yeah, If i was making 20 million per year from my job, I would not care what the share price of my stocks were doing either.

 

[crgarcia]

Quote from peilthetraveler:

Hyperinflation wipes out any debt owed on those houses so after hyperinflation the homes are owned free & clear by the banks. Then they just sell these homes "as is" if they dont want to fix it up themselves. Or they just do a few inexpensive cosmetic repairs (new paint, carpet, landscaping) and still sell it as is and get near top dollar.

Top dollar?
Who'll be buying?

There are no top-dollars in this economy, only consolation prizes.