Video: Bank Tearing Down Brand New, Million Dollar Model Homes In California...

This makes the most sense. I say destroy all the homes that are not being sold, that are half built. Clean the land up and let the land sit. Get ride of the inventory......it's been paid for.

Start fresh. Its a loss. period.

It is like being in a losing position, holding on to the loss and it widens and it brings your P&L down huge...however, every successful trader decides to give you some money to help you out....dump the loss...take the money and start fresh. That is what the banks are doing. The "FINE" they speak of is irrelevent.
 
Quote from EMRGLOBAL:

This makes the most sense. I say destroy all the homes that are not being sold, that are half built. Clean the land up and let the land sit. Get ride of the inventory......it's been paid for.

Start fresh. Its a loss. period.
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Our new economic model...

1. Build, build, overbuild... houses, cars, anything and everything... keep people employed making this stuff.

2. When there is "excess inventory", tear down the houses and dump the rest into the sea.

3. Have the Fed and treasury print money and reimburse the banks and everybody who lost their asses on the "liquidated excess inventory"...

4. Start over... produce everything as fast as you can. Keep people employed.

Voila! Why didn't somebody think of this sooner??
 
Peter Schiff warned it would come to this quite some time ago.

He was against it.:)

Why destroy assets that are worth something?

Perhaps nowhere near as much as thought before but still worth something.
 
Quote from ByLoSellHi:

If true, that would imply that the bank couldn't literally give these homes away, as that would result in at least some revenue, rather than a cost to demolish the homes, plus the forever lost revenue from any sale.

He talks about many homes in many subdivisions in Southern California being simply torn down - brand new homes.


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OK so under new FASB rules should the bank mark-to-market the value of this property (land value $50k) or should we mark-to-best-estimate i.e. $250k
 
Quote from Trendytrader:

OK so under new FASB rules should the bank mark-to-market the value of this property (land value $50k) or should we mark-to-best-estimate i.e. $250k
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The banks and Goldman Sachs & JP Morgan, especially, are our government, so they'll write the legislation as they see fit.

You can take that to the bank.
 
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