Forum Post: what you should demand
Posted 13 years ago on Oct. 28, 2011, 12:16 p.m. EST by renu4283
(2)
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You should demand from banks and financial institutions no lobbying and no political contributions for two presidential election cycles (for 8 years). This will make the true democracy function on a level playing field.
uhhh does this response have anything to do with my idea...
The media is not taking your efforts seriously because they claim there is no specific demand to implement. So this should be the single demand.
The idea of the banks recovering the loss thru selling the property is, at this time, ludicrous
Idea: Banks should be required to ' Suspend' payments and interest accumulation if a person loses their job during an 'economic downturn' until that person finds a comparable paying job or until the national unemployment rate is less than 5%.
this only changes who owns the money that is not being recieved by the bank anyway there is no money. but the person can still stay afloat until they are back to work.
The idea of the banks recovering the loss thru selling the property is, at this time, ludicrous
Idea: Banks should be required to ' Suspend' payments and interest accumulation if a person loses their job during an 'economic downturn' until that person finds a comparable paying job or until the national unemployment rate is less than 5%.
this only changes who owns the money
That would make the interest rates for those of us who actually pay our mortgages go up.
the federal reserve controls the interest rate not the banks. so how could that happen
They only control the rate on very short term loans between banks. Obviously it has an overall trickle down effect on consumer loans but it is not great, especially in the short term. For example if you hear on the news that the Fed cut the rate 50 basis points this week and then you go to take out a mortgage, chances are the rate the bank offers you will be the same as the week before.
If that requirement was put in place, the bank would be earning no interest on the mortgages of unemployed people. Therefore they would essentially be loosing money to both inflation and opportunity costs. The recoup these losses, they will have to raise the rates of those with variable rate mortgages and write new mortgages at a higher interest rate.
They are not receiving Any money from the unemployed people anyway. the property just sits there an degrades in worth .. this of course only helps the 99%. but there is a situation here and we all just want to come out the other side OK this would increase the the chances for everyone
as for the increase in rates you mention, this is happening right now due to the situation at hand so this idea would have no effect.
Maybe giving unemployed people a small grace period, say 6-12 months, were payments do not have to be made. To not charge any interest during this time is just not feasible though. The banks would loose money and just charge those who do pay on time more.
if what you say is true.. that is a ponzi scheme that should be outlawed. for a bank to increase the price of my doing business to cover the loss of you doing business sounds just like bernie madoff. my house is an investment. you cannot take from that investment to pay off another investment.
It is supply and demand, just like anything else. The product that banks sell is money. If the supply of money is lessened (by people not paying interest) it causes the price of the money to go up (higher interest rates). It is very common to have to pay more for something to make up for losses caused by someone else. Credit cards are an obvious example. Merchants increases costs to cover the fees associated with them but everyone pays the same price for something, even if they pay cash. I own a dental practice and each year roughly 2% of my fees go uncollected, so the next year I have to increase my fees by that same 2% to recoup the losses.
i understand. then this type of thinking on the part of the banks concerning mortgages will just have to be suspended too. It one way of helping this situation. Things are only going to get worse without some type of action. you are going to lose money anyway due to the shift in focus of the people to surviving without the luxury of health and dental and food in order to have a home.