Someone tell me if this is possible?

Discussion in 'Economy' started by GHook93, Feb 24, 2009.

  1. GHook93
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    GHook93 Aristotle

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    Say America let's all these banks go under, not allowing BK just go under. Then everyone who has a loan with them: mortgage, student, auto, credit card, HELOC etc gets forgiven and not allow other banks to purchase them up.

    You want to stimulate the economy and have people buying again. Have people's $1,000-$3000 mortgage reduced to $0. Have student loans reduced to $0. Have credit card debt wiped out.

    Have the stimulus go towards paying back the money people lost in savings to these banks. Liquidate the capital in all these banks directly to people and businesses who put their savings in them.

    If my mortgage was wipped out, no doubt I would go out and buy a new car, go out to eat more, and even save a heck of a lot more! I guarantee more people would do the same. New banks would start to spring up to take their place. Credit union and local banks (both who were fisically responsible would have a boom in business and would grow to take the place of these greedy giants).

    Economist on the board, Is this possible?
     
    Last edited: Feb 24, 2009
  2. mascale
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    mascale VIP Member

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    An economist, especially in this economy, is more likely to have no answers at all: Than to have any answers about economics, at all!

    But anyone knows that when a business goes under, then the liquidators come in. They sell off inventories and assets. Banks have inventories and assets that would be sold off. You would owe what you owe to someone else, instead of having anything "forgiven."

    The United States, after all, is nation of laws--especially when it comes to the money!

    "Crow, James Crow: Shaken, Not Stirred!
    (Actually OJ Simpson didn't think that he had done anything wrong, either(?)! He was then allowed to learn about how law in the United States really works, as in: "The Obamas, too, are lawyers.")
     
    Last edited: Feb 25, 2009
  3. toomuchtime_
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    toomuchtime_ Gold Member

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    It's not possible. If a bank were in danger of failure, the FDIC would step and take it over. Regardless of what the FDIC decided to do with the bank, you loan would be considered one of the bank's assets, and if the bank were closed your loan would be sold to investors in order to offset some of the banks liabilities.
     
  4. wimpy77
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    wimpy77 Member

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    no its not possible to let the banks go under period.
     

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