tramp

Central Bank Rates Around the World

icandoit.. 100% agree.. now what i want to know is: Are you an economist? or just smarter than all the economists who keep saying "Ben had to bail them out"

Freefall Fed Policies?

The COD rules in IRC Section 108 did not, prior to amendment, cause income to people who were technically bankrupt after the cancellation. THUS, the only people who benefitted from the amendment were people who had wealth AFTER their foreclosure.

Freefall Fed Policies?

Rush.. your comments seem well thought out, but one point concerns me. Allowing the defaulting debtor to bid on the "30 cent" paper will encourage the mass psychology of "profiting by default". A huge mistake was made when the "Cancellation of Debt" (COD) income rules were amended. COD had applied from the inception of the income tax laws, as the theory is indisputable. I no longer expect "moral" reasons to encourage people to pay their debts. But the law should encourage it. Once COD no longer was taxable income, one of the BIG reasons to continue making payments was abandoned. The "profiting defaulter" no longer worries about COD. If you're in a home that's upside down, the "Jim Cramer" mentality of ignoring the monthly payment until the bank "makes me a deal" becomes "acceptable" nationwide. The LAST person that should profit from his own default is the defaulter. If you pay people to default, they will default. The debtor has his chance to acquire the property at the "fair market value" in the foreclosure process. To provide him with other less "embarrasing" means to make a buck on his own decision to not honor his contract will simply encourage it via the "law"; which condones the "Jim Cramer" mindset.