Forum Post: United Borrowers
Posted 12 years ago on Dec. 9, 2011, 9:41 p.m. EST by Lenny
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This content is user submitted and not an official statement
In the early 20th century industrial workers were being abused by the companies that they worked for. They unionized and through collective bargaining were able to greatly improve there situations.
Today homeowners and borrowers are being abused by the banking world. 20-25% of borrowers owe more than their homes are worth. Many cannot pay because their employment conditons have changed with this great recession. Home prices having been spiraling downward because of the foreclosures and the banks unwillingness to make modifications.
Borrowers need to organize to be able to negotiate with the banks. One borrower alone has no power. 50,000 plus borrowers with one bank can make something happen. The government would be forced to be involved because of Freddie and Fannie. Borrowers would negotiate for lower rates, reduced principal, and any number of variations ( make the loan an a lower pricipal number with a full payoff at sale). What would investors do if a large default was in the horizon?
The mortgage crise needs to reconciled in order for our country to move on. The banks are losing money when they foreclose. Why not force them to do the right thing and possibly save everyone money?
Sure, and 200 shoplifters showing up at the Gap are more likely to get away with it too. It's still theft.
NO ONE that borrowed money for a house is surprised that not paying it back results in foreclosure. Fine, stop foreclosures, but at least have half a brain to realize that lending terms will further tighten up as lenders adjust to the reality of having mortgage terms thwarted and collateral access impaired. Down payments and rates will rise.
Prices have fallen because the bubble is over with. Trying to stop prices from reaching market clearing levels by artificially gumming up the process is doomed to fail and just delays recovery.
It's also a royal fuck job to younger families looking to enter the market. Government shouldn't be trying to rig the market to protect the equity of current holders at the expense of future owners. It has no business favoring old over young.
OWSers that are against letting the market clear are too stupid to understand this obvious angle.
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Organize? Negotiate?
After watching Inside Job, I'm convinced there is nothing to negotiate. Those at the very top of the largest lending and investing institutions need to go to jail.
they need their assets seized.
restitution must be made.
so.
I think we should all apply for about ten or twenty credit cards. max them out. cut them in half. send them back with a note:
I'm too big to fail
ZenDog, If even half of Americans who have credit cards or did such a thing there would be some serious disruption to the economy!
no doubt about that.
I think I would prefer a simple demonstration of the possibility - that in itself should be enough to cow the savings / investment institutions.
We have got to end the whole philosophy of deregulation of the economy - what ever it takes.
Whatever it takes-right on! I think if as many of those who have lost their homes,jobs and businesses shredded their cards (assuming they haven't BK'd or quit paying by default)it would garner the serious attention we would all like to see.
I see you mention the movie 'Inside Job' in a prior post to this thread. We're still waiting months later for the disc 'Inside Job' If you have a freebie link to the whole movie online it'd be appreciated. Thanks.
I bought the movie at . . . . best buy I think. It's out on DVD
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