Mortgage Arrears and Negative Equity with Dr. Stephen Kinsella

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Mortgage Arrears and Negative Equity with Dr. Stephen Kinsella.

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Johnny Waldron >> (All): Can you confirm 790k mortgages, 44k in 90 day arrears, 35k interest only, 13k worried about arrears

Deeter >> (All): Johnny Waldron: think he mean 13,000 worried about repo’s as they haven’t paid in a year or more

Kourosh >> (All): does that mean we need a United States of Europe?

Dan >> (All): What do you think of repossession moratoriums, another way of kicking the can down the street?

Cliff Edwards >> (All): A common EZ wide banking regulation would have been a step forward?

veronica cawley >> (All): what are the chances of Ireland been in a position of servicing the current mortgage debt in 5-10 years

Kinrich >> (All): federalism suggests our banks will be supported by the EU, when the bailout is suggesting the opposite.

Felim >> (All): Can you estimate our total sovereign exposure (including formerly private debt)? What is the potential of a mass mortgage default to add to this — if we keep recapitalising banks?

Deeter >> (All): just off the phone to central bank, trust me, there’s loads of regulation, just not much enforcement/audit

Johnny Waldron >> (All): Please don’t call it a Bail Out. It was a predatory loan!

Cliff Edwards >> (All): Why had the issue of Ireland sponsoring a domestic Banking industry ?

Nigel >> (All): How can we have fiscal co-ordination without political union?

Dan >> (All): So you don’t believe Morgan kelly’s Doomsday scenario?

Kourosh >> (All): wow, and david was saying that we only earn €18 billion from income tax each year!

liam >> (All): Kourosh, actually, we make about 14B from income tax, 32B odd in total

Cliff Edwards >> (All): What is the significance (in your view) of Ireland retaining a domestic Banking industry

steve >> (All): If you have a judgement mortgage against your family home, can the bank repo your home

Bri >> (All): DoF Mandarins are apparently unaccountable for failed policies. Why is this not being identified as a systemic problem?

Deeter >> (All): if all of our banks are foreign owned it creates a secondary system that can effect a ‘tax’ (via higher rates/costs) and send it abroad reducing our balance of payments while reducing the money in our economy no?

Wayne Leone >> (All): Why do FF/FG/Lab policies not include saying no to paying the debt of insolvent banks? What are they afraid of?

Dan >> (All): 1,000 people and how many MA/PhD economists’? Shocking!
Vicky >> (All): 900 of them must have been off making tea

Johnny Waldron >> (All): I would argue that given our small population and our increased interconnectedness vis a vis other countries we are more prone to insiders corrupting the system. For this reason I would prefer foreign banks staffed by people (including Irish nationals) with international experience of best practice to domestic ones staffed exclusively by people with local experience

Bri >> (All): Media are being v quiet about DoF failings!

Shane Donnellan >> (All): What are the chances of Ireland exiting the EU? And what would happen deposits in Irish banks. There is talk about people moving their deposits abroad currently. Is there evidence of this?

Kourosh >> (All): are there other countries which do not have a national banking system?

Stephen >> (All): What have other countries done in this situation, I read somewhere there have been many bank bailouts over the last 20 years

Deeter >> (All): was looking at bank runs y’day too big one is right now

Felim >> (All): via @sadakaireland 100% of listed companies on the Palestine Exchange disclosed their preliminary fiscal year results for 2010

Cliff Edwards >> (All): The german Gov has a Bank bailout fund (SOFIN) . seems to me the Irish taxpayer is bailing this fund out?

Stephen >> (All): Found it!

Johnny Waldron >> (All): What do you think about introducing non-recourse consumer mortgages i.e. the security is limited to the property asset?

jim >> (All):

Heather >> (All): Sorry if this is too basic a question- can you explain “non recourse”mortgages?

Deeter >> (All): florida has non-judicial (non-recourse) mortgages and 25% of loans are defaulting, California has judicial and about the same rate

Cliff Edwards >> (All): non recourse terms imply very different Risk premiums.. so thats impractical

Deeter >> (All): bank can still get a deficiency judgement for the difference, and in non-recourse (non-judicial) it means no courts, it also means that (in US example) the likes of your management company can foreclose on you

Heather >> (All): For comparison, what is our situation now? (sorry I don’t have a mortgage)

Vicky >> (All): So whats going to happen to all these repo houses ? Left Empty to be robbed of every bit of copper out of them?
Billy Treacy >> (All): Is that not the fundamental problem which was the root cause of our crisis, the fact that we don’t have non-recourse mortgages? The Banks were lending without sharing the risk …

Nick McGivney >> (All): Fascinated though I am by all this, it is failing miserably to write my 800 word marketing column. I can stay if everyone agrees to write 50 words each. Unlike our recent economic policies however, it all has to join up and make sense… 🙂

Johnny Waldron >> (All): Given the phenomenon of the NAMA wives club e.g. the continued palatial accommodation of the bankrupt developers? Do you think we should revisit the treatment of assets transferred between spouses?

Heather >> (All): Wow, i never knew that! Our situation is *insane*.. at least in Nevada people could walk away and start again!

Heather >> (All): This convinces me I’m smarter to just rent. We’re obsessed with house ownership here maybe.

Heather >> (All): This convinces me I’m smarter to just rent. We’re obsessed with house ownership here maybe.

Shane Gough >> (All): is there an economic argument for a debt forgiveness programme for people in neg equity?

Felim >> (All): Ooops, sorry. for long link — A pdf paper of ‘This time it’s different’ available freely here:
Cliff Edwards >> (All): Why (in your view) has there NOT been a housing bubble in Germany?

Vicky >> (All): But how long do you think it would take to get out of Neg Equity – naturally – ie wait on your house price to go back to the mortgage value (Never I’m thinking)

Cliff Edwards >> (All): Re Germany.. I disagree.. issue not just cultural..There are significant differences in the protection of both landlords and tennants in the German system.. AND the taxation system disincentivises property speculation.?? do you agree or no?
Vicky >> (All): thanks great session

2 thoughts on “Mortgage Arrears and Negative Equity with Dr. Stephen Kinsella

  1. Of course there is a need for debt forgiveness it is a nobrainer but our smart boys in goverement have not cop on to this yet

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