Matt Copper on Mortgage debt Problem.

riker1969

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I don't often agree with Matt. He is usually too right wing for my taste but he makes some valid points here about the growing mortgage debt problem. Like many people I initially felt that I should not have to bail out those who were reckless or financially illiterate. (ie the guy on the late late who said he never heard of a stress test) but Matt does make some valid points about why we cant ignore this problem-even from a moral point of view.

I would also acknowledge that many people borrowed conservatively but can no longer pay because of redundancy.

Given particularly the situation with our developers who because it seems of negligence by the banks wont be pursued for personal guarantees ( according to the Indo), why cant something be done for Joe soap. Like forcing banks to take an equity stake for certain types of mortgages? Seems the Banks can swallow billions of tax payers money but can't be flexible for their clients?

We can’t afford not to tackle our debt crisis -Times Online
 


riker1969

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Did you even read the piece?? Makes valid point that the state provides social housing out of tax payers money-tax payers who might lose their own homes? Surely,that's a moral hazard?!
 

SKELLY

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Matt has gone down in my estimation with this populist NAMA for the mortgage holder dross.

This equity stake, who services the interest on the stake? Ultimatly the bank will end up worse off.

This is just one of the many holes in his plan. Nevermind the moral hazard.

Something needs to be done but i was prudent in the good times, im not paying twice, banks and now this, for other peoples mistakes.
 

hammer

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Very good article. He must be monitoring this site :)

I have no problem the State bailing out my neighbour, as the State has already bailed out Anglo €22.3 billion minimum and INBS €2.7 billion.

My neighbour has a family to feed. Anglo / INBS dont.
 

grafter1

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Did you even read the piece?? Makes valid point that the state provides social housing out of tax payers money-tax payers who might lose their own homes? Surely,that's a moral hazard?!
I read the piece. He makes a couple of points that many of us will agree with but at the end of the day we're all on our own.
 

OCicero

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Very good article. He must be monitoring this site :)

I have no problem the State bailing out my neighbour, as the State has already bailed out Anglo €22.3 billion minimum and INBS €2.7 billion.

My neighbour has a family to feed. Anglo / INBS dont.
Let's just be careful here: when you say the "State" you mean taxpayers. A bailout on private debt is essentially a tax on being able to pay your mortgage.
 

oceanclub

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Matt isn't just for bailing out people who are struggling to pay their mortgage. He's for bailing out EVERYONE in negative equity, including multi-millionaires who have no problem paying for their overpriced property.

Populist nonsense that makes Marc Coleman look good.

P.
 

Fides

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Matt isn't just for bailing out people who are struggling to pay their mortgage. He's for bailing out EVERYONE in negative equity, including multi-millionaires who have no problem paying for their overpriced property.

Populist nonsense that makes Marc Coleman look good.

P.
+1

We looked to move in 2005 but the house went for way over its reserve price and we stayed put. It all looked stupid to me at the time. Now let's say the person who paid too much for that house is now in trouble. I help to bail them out, they get to live in the house we aspired to. No, I don't think so.
 

OCicero

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+1

We looked to move in 2005 but the house went for way over its reserve price and we stayed put. It all looked stupid to me at the time. Now let's say the person who paid too much for that house is now in trouble. I help to bail them out, they get to live in the house we aspired to. No, I don't think so.
What happens if, in 20 years or whenever, the property market is humming along again? Will the people who were bailed-out today give back what they got (whatever form it took), plus interest, plus a share of the profit on their house? To who? Will the bailed-out refund those people who were able to pay back their mortgages and who directly contributed to their wealth?

Assume we start paying this tax on being able to repay a mortgage, and there are write-downs: what of the next generation? Will the children of these taxpayers be able to take a claim on the property their parents helped pay for, or will the children of the bailed-out get to keep the wealth transferred from the parents of others?

The size of all our problems seems to push me into trans-generational thinking, because whatever figures you arrive at, many of us will be dead and gone by the time it's sorted out, and the next generations deserve a thought now before we screw around with them even more.
 

hammer

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1% bailout your neighbour tax sounds good :)

Especially when PRSI is being done away with and being grouped with health levy & income levy and being renamed QUANGO HAMMER TAX
 

Fides

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1% bailout your neighbour tax sounds good :)

Especially when PRSI is being done away with and being grouped with health levy & income levy and being renamed QUANGO HAMMER TAX
Maybe if they let me use their SUV or have a weekend in their holiday home. We've been ignoring the problems of personal debt but it goes well beyond mortgages alone.
 

hammer

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As I`ve said before. Cancel the Anglo & INBS wasted bailouts of €25 billion and split it between every red headed, left handed, west ham supporter in the State.
 

jackryan

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And us suckers who lived within our means should prop up those who made stupid decesions?
 

hammer

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You already are.

1. Fianna Fail / Greens
2. €20 billion deficit
3. NAMA
4. €22.3 BILLION for Anglo
5. €2.7 billion for INBS
6. €750M ebs
7. Public housing
8. Private healthcare
9. €3.5 billion BOI
10. €3.5 billion AIB
11. €300MILLION for VHI
12. Quinn family €2 billion

Need I go on :)
 

OCicero

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You already are.

1. Fianna Fail / Greens
2. €20 billion deficit
3. NAMA
4. €22.3 BILLION for Anglo
5. €2.7 billion for INBS
6. €750M ebs
7. Public housing
8. Private healthcare
9. €3.5 billion BOI
10. €3.5 billion AIB
11. €300MILLION for VHI
12. Quinn family €2 billion

Need I go on :)
The man has a point.

By the way you left out the E750M for the BOI defined benefit pensions scheme. I have no problem with ordinary workers getting good pensions, but the liability for these pensions lies with the company's shareholders, not taxpayers.
 

hammer

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Not to mention

DDDA
DAA - Terminal :) 2
FAS
Greece
Decentralisation
PPARS
Evoting
Luas
Port Tunnel


How much tax are you paying Jack? :)
 


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