[extropy-chat] Redistribution of wealth

[Kevin Freels]

>"Now, some say that certain groups/organizations
> purposely tweak market conditions in order to create these events so
> that they can seize mass amounts of property, "

Contrary to popular belief, banks are simply not in the business of taking
properties. It serves them no purpose. Most of the time, they lose money on
a foreclosure. The rest of the time, they get the balance of their loan, any
costs it took to get their money, and the remaining portion of the proceeds
go to the former owner. They make their money off interest and they make
interest by making loans, not the other way around.




----- Original Message ----- 
From: "Mike Lorrey" <mlorrey at yahoo.com>
To: "ExI chat list" <extropy-chat at lists.extropy.org>
Sent: Wednesday, September 29, 2004 11:26 AM
Subject: Re: [extropy-chat] Redistribution of wealth


>
> --- Adrian Tymes <wingcat at pacbell.net> wrote:
> >
> > FMI - one of the resulting reforms was that the banks
> > no longer got to call in loans on otherwise credit
> > worthy people, no matter what the status of the banks'
> > other loans, right?  Thus preventing that specific
> > disaster from happening again.
>
> Actually, no. Ever hear of the S&L crisis? That was another cascade
> chain of loan recalls. Now, some say that certain groups/organizations
> purposely tweak market conditions in order to create these events so
> that they can seize mass amounts of property, but I think it is more a
> matter of markets either drifting out of baysean conditions, or getting
> buggered by unexpected legislation/regulation/regulators (like the
> Telecom Reform Act of 98 buggered the internet bubble).
>
> THe key reform following 1929 was that it was made a lot harder for you
> to borrow money to invest in the market. You have to have real assets
> behind any such loan now, and those assets have to exceed the value of
> the loan so that they can't be devalued too much by any market collapse.
>
> =====
> Mike Lorrey
> Chairman, Free Town Land Development
> "Necessity is the plea for every infringement of human freedom.
> It is the argument of tyrants; it is the creed of slaves."
>                                          -William Pitt (1759-1806)
> Blog: http://www.xanga.com/home.aspx?user=Sadomikeyism
>
>
>
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