Moneymoney

Mon Feb 27, 2017, 02:44 PM

I think President Trump should renegotiate payment terms

Everyone with debt, personal (student loans, credit cards, auto, etc), small business, local, county and state. But not debt owed to individuals or directly from one business to another. Since in the totality of all this the banks have basically gotten their money back and then some, and, since doing what I suggest below would free up a huge amount of money velocity thus benefiting not only businesses and jobs, but the banks themselves would also benefit. President Trump should have a webpage created. Nothing fancy, just something that could probably be done overnight.

On this webpage everyone can log on and register all their dept and basically give President Trump the power of attorney to renegotiate the terms. President Trump could then negotiate these terms: All this debt will be cut by, say, 2/3. If they refuse President Trump can say he will issue a Presidential pardon to everyone who stops paying.

Sounds sensational but it is doable and would have more positive effect than it would negative. It would go a long way in deflating this monster credit bubble and creating stimulus.

I'm just saying.....





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Reply I think President Trump should renegotiate payment terms (Original post)
Iron Condor Feb 2017 OP
Fiendish Thingy-BC Feb 2017 #1
Sassyspop Feb 2017 #2
Let it go Feb 2017 #3
Badsamm Feb 2017 #4
Iron Condor Feb 2017 #5

Response to Iron Condor (Original post)

Mon Feb 27, 2017, 03:04 PM

1. You realize that would collapse the world economy, right?

People hold that debt as investments, and if the value of those bonds and other debt instruments decreased by 2/3, the markets would react violently.

I was in favour of the "cram down" approach to making mortgage lenders experience the consequences of their high risk lending, but to unilaterally reduce all debt obligations by 2/3 is the height of irresponsibility and would have the opposite effect than what you predict.

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Response to Iron Condor (Original post)

Mon Feb 27, 2017, 03:12 PM

2. Idiocy....no POTUS has the legal authority to do that....if it were an option...

 

...why wouldn't Obama have done it. He knew better ya think?

"Sounds sensational but it is doable....." No it doesn't sound sensational or doable....it sounds illegal and stupid.

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Response to Iron Condor (Original post)

Mon Feb 27, 2017, 03:15 PM

3. You do realize even bank loans are an asset class?

Yes banks are securitizing everything.

You really think they want to hold on to the risk? Hell no! They are just conduits to originate loans.

You're really proposing collapsing everyone's retirement.

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Response to Iron Condor (Original post)

Mon Feb 27, 2017, 05:35 PM

4. So want you to keep rewarding failures? I don't have debt because I did things the right way

What do I get? If you want to cut me a check equal to the average owed plus 25% I could live with that.

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Response to Iron Condor (Original post)

Tue Feb 28, 2017, 02:56 PM

5. There are two points among a number of points you are not taking into perspective

Sorry for my delay in responding but I am a fairly busy person.
"You realize that would collapse the world economy, right?"

Correct if it were a 100% dissolving of debt instead of something like 2/3 **AND** we were actually in a recovering economy which all we have been in the last eight years is just a massive credit bubble expansion. The stock market numbers are not being driven by recovering market activity, consumerism, increased jobs and wages, money velocity, etc.. No, the only thing driving the market numbers is a massive credit expansion and interbank lending & fed funds rate at zero percent while the general public pays far greater on much of their credit rates.

The second point and again sorry for generalizing but again I am too busy with too many things to do than sit here posting on a forum for hours. The second point is: The economy has already gone over the cliff and there's nothing Trump, Clinton, Sanders or anyone can do about it. Its simply mathematics. Bush doubled the national debt during the time he was in office. He increased the debt equal to the amount of all our previous Presidents combined. Obama did the same thing. From the time Obama took office he too from that point doubled our national debt. Now we are twenty trillion dollars. President Trump if he gets two terms will have to at least double it again. Not going to happen.

This exponential growth curve is at its end. If you know anything about exponential growth curves you know that they have a long period of light/stealthy growth until they reach their last phase which is very short lived and the curve goes parabolicly vertical.

I said the positives of doing what I suggested in the OP would ultimately outweigh the negatives precisely because of the economic reality facing us and the world and sorry that I cannot get more detailed but I must get back to my responsibilities.




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Moneymoney