What would happen if everyone in the US and UK whose homes are worth less than what they owe just stopped paying their mortgages next month?
(hint - we might just find out)
September 10, 2008
HousingPANIC Stupid Question of the Day
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17 comments:
No mortgage payments = financial collapse, anarchy! It would be equivalent to blowing up all the buildings in Dover like in Fight Club. Yay no work tomorrow! No income.. on second thought.
Does anyone know that Visa lost $1 billion last year? That's over a quarter of it's $3.5 billion income. Looks like Visa is using its credit card. How long can a company survive doing that?
After Argentina's financial system collapsed, everyone eventually quit making payments. The govt simply threw its hands up. Most people live in houses that were foreclosed on and work in business that went bankrupt. The govt simply can't throw everyone out on the street.
Hank's Bazooka would run out of ammo?
China's National Bank would lose $300 Billion or more?
.
I suggested this last week. I say everyone go balls out and not pay. (renters too) in protest of the massive bailouts. Hey they can't kick everyone out and if they tried...The Revolution will be televised.
RayNLA
The government needs to step in and help people who are behind on their mortgages so they won't leave their house. I know you HP'ers are against it, but count my words; IT WILL HAPPEN!
The question has ominous tone.
The "professionals" knew they were
scamming the masses, and thus should
suffer the greatest consequences;
but victims also will, or must,
suffer.
The alternative is chaos; though
we are on the verge already.
How about credit cards and auto loans too?? Seems like all those unemployed people may be doing that. . .yesterday's stock market was beyond the pale. . .for the first time, I really think we are in a 1929 situation - too many banks and companies to prop up . . .Lehman, WaMu, GM, Ford, UAL, etc. etc. Where will it end. . . .
Of to Zurich tomorrow for 3 weeks to get away from this madness. . .those thrifty Swiss use CASH!!! Not uncommon for them to pull out $500 worth of Francs to pay a grocery store or restaurant. . .since it is safe, they carry around a lot of money. . .and they spend what they earn, not 10 times what they earn.
House prices would correct. Next month, if more mortgagors find themselves under the water and stop paying too, house prices would correct more. Repeat until the number of mortgagors stopping their payments equals zero. In the end this correction algorithm will reveal the CORRECT house prices.
what would happen? How about: the rest of us would never do business again with these people unless they paid cash up front?
Then it would finally be a "good time to buy" - for real!
Uhhhmmm......
The government takes over freddie and fanny?
No wait, that already happened at only at 9%.
Let's see.......
OH I KNOW!
Communism!
Yeah that's the ticket!
Panic?
If this would happen, they could not delay the impending financial meltdown until after the puppeteers cheat McSame into office. Barack would win in a landslide. We would still be in a steaming pile of trouble, but at least or leaders wouldn't be an insane, senile old man and a bimbo.
There are responsible people in this world. There word is their soul. I stand by that as millions do.
just sent my keys in were packed
& -someone in India will pay my bill and can move in !
Everything the government does from this point forward will be to prevent that meltdown even if it means spiking up the easy money and giving loans to people they do not deserve .
The government should of took the course of giving loans until the
Money brokers could unwind their losses .
I would not of been so mad if the government formed a mortgage company with prudent underwriting to provide loans for a while until the inventory could of been sold and the market got stable ,but they didn't go that route .
The government didn't clean up the corrupt REIC ,so they are just going to get more fraud and speculators gaming the system .
Take the Housing Bill ,with all its limitations ,that will be changed ,and project that out to be actually 20 times as costly ,and you got what the master plan is .
The government wants to take over all the bad loans and make deals with buyers who just wanted equity money .Good luck dealing with gamblers Mr. government .
While it is true that some of the borrowers were really buying to
have a home ,the truth is those buyers can afford their payments usually . So go ahead and bail out the scum gamblers and Wall Street
Money brokers and scum realtors Mr.Government, instead of the right remedy, and watch America go down the tubes .
The acts of the government right now are unconstitutional ,taxing without representation ,a obstruction of justice and a allowance of crimes by power brokers and scum fraudulent buyers and realtors while not being brought to the Justice system as the true remedy when crimes are committed .
The government is saying now that financial losses for Wall Street and the lenders and gamblers are worthy of a overthrow of the Constitution and rule of law ,and communist take-over by the government of private Companies ,to socialize their losses . Further the government will attempt to provide easy money loans to parties that committed crimes .
All I can say is stop this while you can ,if it isn't to late . Impeach Paulson , Dodds , and all the rest .
If this would happen, they could not delay the impending financial meltdown until after the puppeteers cheat McSame into office. Barack would win in a landslide. We would still be in a steaming pile of trouble, but at least or leaders wouldn't be an insane, senile old man and a bimbo.
The above posts illustrates the mentality of most democrats and why they are losing in the polls, even in the face of the unpopular Bush presidency.
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