1. Why would a bank make a secured loan to someone they know can’t afford it? Because they can collect interest for a while – and then repossess the property.
2. Why would anyone continue to loan money to Barack Obama? See answer to question 1 above.
Reblogged this on U.S. Constitutional Free Press.
“While it is technically possible for a bank to make a profit from a foreclosure, foreclosures generally appear as net losses on bank balance sheets. When banks foreclose on a house and then sell it, the bank receives the money from the sale but the amount is usually less than what the bank originally loaned to the homeowner.”
http://www.ehow.com/info_7746035_do-banks-make-money-foreclosures.html
There are many costs involved with foreclosures, and this is what prevented banks from making bad loans, until the Democrats put a gun to their collective heads. Banks are as a rule are risk averse, the housing bubble was a creation of idiotic vote buying politicians. Like Obama.
+1 You nailed it. Banks don’t want to foreclose, they want to be repaid. In response to the main post – not sure what US debt holders are going to repossess. And, Congress could repay the debt tomorrow. They have the authority to mint money. They could mint a 17 trillion dollar coin. It would freak everybody out and there would be a total loss of faith, likely resulting in big inflation, but it could be done.
China has loaned the US enough to bring down thr good ole’ USA if they decide to sell.[theirdebt]
Maybe the government should get another UN IPCC [International Panel for China Claim]
To hire 4000 economists to run some computer models, to see if the USA is still a country in 2100?
One of my favourite movies of all time ;p
“Bud: [doing speed with Otto] Never broke into a car, never hotwired a car. Never broke into a truck. ‘I shall not cause harm to any vehicle nor the personal contents thereof, nor through inaction let the personal contents thereof come to harm’ It’s what I call the Repo Code, kid!”
))
I don’t get this. What is the security for government debt, and how would would someone repossess it?
Own the government and control policy?
For starters there is this…
“The Federal Government owns nearly 650 million acres of land – almost 30 percent of the land area of the United States.”
http://nationalatlas.gov/printable/fedlands.html