Recourse Bob's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/12655/comments http://seekingalpha.com/article/124387-why-felix-should-walk-away?source=feed#comment-416686 416686

On Mar 05 03:19 PM Chris B wrote:

> Society invented contracts and laws so that the question of whether
> to pay or not could be considered a legal issue, rather than an unsolvable
> moral issue. Your obligation under your contract is exactly what
> the contract says and exactly what the law requires. You can walk
> away from the collateral under the terms of the contract and state
> law, just as the person who sold you the house for $600k is able
> to walk away with that cash and you have no recourse to him/her now
> that the house is worth less. Those are the rules.
>
> Does this have a negative impact on society or innocent bystanders?
> Yes and no. Neighbors' houses decline in value, which equals the
> better deal that new buyers can get, which nets to zero cost/benefit.
> Property tax collections go down, the effect of which is good or
> bad depending on your ideology. Your lender loses hundreds of thousands
> of dollars processing the foreclosure but the lender's money has
> flowed to the person who sold you the house - another net effect
> of zero. Expenses are incurred in the foreclosure process, moving,
> selling, storage, redecorating, etc. but one man's cost is another's
> revenue - another net effect of zero.
>
> If you worry about these kinds of moral dilemmas, you might as well
> agonize about which car company you want to keep in business when
> you buy a car.]]> Fri, 06 Mar 2009 18:28:09 -0500

On Mar 05 03:19 PM Chris B wrote:

> Society invented contracts and laws so that the question of whether
> to pay or not could be considered a legal issue, rather than an unsolvable
> moral issue. Your obligation under your contract is exactly what
> the contract says and exactly what the law requires. You can walk
> away from the collateral under the terms of the contract and state
> law, just as the person who sold you the house for $600k is able
> to walk away with that cash and you have no recourse to him/her now
> that the house is worth less. Those are the rules.
>
> Does this have a negative impact on society or innocent bystanders?
> Yes and no. Neighbors' houses decline in value, which equals the
> better deal that new buyers can get, which nets to zero cost/benefit.
> Property tax collections go down, the effect of which is good or
> bad depending on your ideology. Your lender loses hundreds of thousands
> of dollars processing the foreclosure but the lender's money has
> flowed to the person who sold you the house - another net effect
> of zero. Expenses are incurred in the foreclosure process, moving,
> selling, storage, redecorating, etc. but one man's cost is another's
> revenue - another net effect of zero.
>
> If you worry about these kinds of moral dilemmas, you might as well
> agonize about which car company you want to keep in business when
> you buy a car.]]> http://seekingalpha.com/article/121567-rick-santelli-speaks-for-the-silent-majority?source=feed#comment-399039 399039 Sun, 22 Feb 2009 16:11:17 -0500 http://seekingalpha.com/article/117295-bad-bank-and-draft-bill-spook-cds-traders-and-wall-street?source=feed#comment-370607 370607 Thu, 29 Jan 2009 22:31:03 -0500 http://seekingalpha.com/article/110530-investment-advisory-business-will-suffer-because-of-madoff?source=feed#comment-329126 329126 Sun, 14 Dec 2008 12:34:26 -0500 http://seekingalpha.com/article/100844-refiners-finally-increase-margins?source=feed#comment-288133 288133 Wed, 22 Oct 2008 16:33:25 -0400 http://seekingalpha.com/article/95094-two-fight-back-cramer-s-mad-money-9-11-08?source=feed#comment-253607 253607
As far as his charitable trust investments, does anyone know how much money is invested in the trust. It may be only a small amount, but it gives him something to brag about.

Why would a supposedly great investor, as Cramer would have you believe his was, leave Wall Street and become a clown on CNBC? There must be a reason that he is no longer handling large investors' money. Something must have happened with his investing activities.]]> Sat, 13 Sep 2008 17:22:56 -0400
As far as his charitable trust investments, does anyone know how much money is invested in the trust. It may be only a small amount, but it gives him something to brag about.

Why would a supposedly great investor, as Cramer would have you believe his was, leave Wall Street and become a clown on CNBC? There must be a reason that he is no longer handling large investors' money. Something must have happened with his investing activities.]]> http://seekingalpha.com/article/94571-the-weekend-american-capitalism-died?source=feed#comment-249962 249962 Wed, 10 Sep 2008 00:07:39 -0400 http://seekingalpha.com/article/94226-forget-the-moral-outrage-just-restore-the-mortgage-markets?source=feed#comment-247745 247745
When you say "subsidized by renters," let us not forget that landlords who own rental property deduct mortgage interest, as well. And that deduction potentially benefits renters. So I don't see where renters are subsidizing homeowners.
]]> Sun, 07 Sep 2008 17:38:22 -0400
When you say "subsidized by renters," let us not forget that landlords who own rental property deduct mortgage interest, as well. And that deduction potentially benefits renters. So I don't see where renters are subsidizing homeowners.
]]> http://seekingalpha.com/article/93980-wells-fargo-sham-revealed?source=feed#comment-246672 246672 Fri, 05 Sep 2008 21:55:30 -0400 http://seekingalpha.com/article/91641-interview-with-jim-rogers-part-i-bigger-financial-shocks-loom?source=feed#comment-235178 235178 Wed, 20 Aug 2008 18:56:49 -0400 http://seekingalpha.com/article/90187-dollar-s-up-oil-is-down-but-why?source=feed#comment-228306 228306 Mon, 11 Aug 2008 20:50:53 -0400 http://seekingalpha.com/article/89219-meredith-whitney-and-the-hierarchy-of-payments?source=feed#comment-224233 224233 Wed, 06 Aug 2008 13:43:50 -0400 http://seekingalpha.com/article/89228-citigroup-reports-loss-on-credit-card-securitizations?source=feed#comment-224222 224222 Wed, 06 Aug 2008 13:33:35 -0400 http://seekingalpha.com/article/89219-meredith-whitney-and-the-hierarchy-of-payments?source=feed#comment-224113 224113 Wed, 06 Aug 2008 12:17:15 -0400 http://seekingalpha.com/article/89375-wamu-borrower-purposely-defaults-gets-foreclosed-on-sues?source=feed#comment-224089 224089 Wed, 06 Aug 2008 11:58:07 -0400 http://seekingalpha.com/article/85967-skeptical-this-relief-rally-has-legs?source=feed#comment-211453 211453 Tue, 22 Jul 2008 10:16:12 -0400 http://seekingalpha.com/article/84970-abc-news-gaffe-reveals-concerns-about-us-banking-system?source=feed#comment-206291 206291 Tue, 15 Jul 2008 15:30:14 -0400 http://seekingalpha.com/article/83905-as-costs-rise-consumer-staples-and-utilities-should-outperform?source=feed#comment-200002 200002 Mon, 07 Jul 2008 13:58:57 -0400 http://seekingalpha.com/article/83856-spectra-energy-gas-pipelines-make-great-recession-proof-stocks?source=feed#comment-199983 199983 Mon, 07 Jul 2008 13:37:24 -0400 http://seekingalpha.com/article/74679-between-inflation-and-interest-rates-bernanke-s-in-deep?source=feed#comment-159489 159489 Wed, 30 Apr 2008 13:06:00 -0400 http://seekingalpha.com/article/73400-jingle-mail-how-do-you-value-home-equity?source=feed#comment-155267 155267 Wed, 23 Apr 2008 10:43:16 -0400