ivannomonet
Registered User
- Messages
- 86
I've had a thought kicking around in my head for a while that I'd like people's opinion on, since I'm genuinly baffled as to why it's never been mentioned elsewhere. This is a serious question although some may consider it a dumb question. Please feel free to poke holes in it.
Since the government pumped 7 billion euro into the 2 big banks to alter or better the banks capital position in relation to its debts, why could they not simply use the 7 billion to pay off all outstanding residential mortgages for PPR's in those banks?
They money still ends up in the banks so they now have the same cash, but Joe & Mary soap are no longer saddled with a 40 year mortgage for a propertly worth 50% less than what they bought it for, so the personal debt of the citizens is grossly reduced. So the taxpayer is now bailing out the taxpayer and the banks with the same pot of money.
Now I know there will be those who say what about the people who had no mortgage? they wont benefit...Well, how do they benefit just because Joe & Mary are saddled with a big mortgage? As a matter of fact they probably suffer since Joe & Mary cant afford to spend anymore thus causing Tom in retail to lose his job etc...
Or those who have mortgages with other institutions? I dont know, maybe 7 billion is enough to pay off those PPR morgages in other institutions too...
I dont know what the cost would be...
My only point is that instead of giving the cash straight to the banks why wasnt it fed through the system to relieve debt along the way, surely a better end result?
The added benefit is the ability to immediatly end the TRS scheme so saving the government more cash, plus no more mortgage interest supplement for those on welfare etc...
And just to clarify, I'm not personnaly looking for any handout since I am employed and do have a mortgage but its manageable to me.
I'm only asking why we couldnt have used the cash to eliminate debt for the majority rather than the minority...
Since the government pumped 7 billion euro into the 2 big banks to alter or better the banks capital position in relation to its debts, why could they not simply use the 7 billion to pay off all outstanding residential mortgages for PPR's in those banks?
They money still ends up in the banks so they now have the same cash, but Joe & Mary soap are no longer saddled with a 40 year mortgage for a propertly worth 50% less than what they bought it for, so the personal debt of the citizens is grossly reduced. So the taxpayer is now bailing out the taxpayer and the banks with the same pot of money.
Now I know there will be those who say what about the people who had no mortgage? they wont benefit...Well, how do they benefit just because Joe & Mary are saddled with a big mortgage? As a matter of fact they probably suffer since Joe & Mary cant afford to spend anymore thus causing Tom in retail to lose his job etc...
Or those who have mortgages with other institutions? I dont know, maybe 7 billion is enough to pay off those PPR morgages in other institutions too...
I dont know what the cost would be...
My only point is that instead of giving the cash straight to the banks why wasnt it fed through the system to relieve debt along the way, surely a better end result?
The added benefit is the ability to immediatly end the TRS scheme so saving the government more cash, plus no more mortgage interest supplement for those on welfare etc...
And just to clarify, I'm not personnaly looking for any handout since I am employed and do have a mortgage but its manageable to me.
I'm only asking why we couldnt have used the cash to eliminate debt for the majority rather than the minority...