Talk radio host Ed Schultz brought up an interesting point on his show this afternoon. He was wondering how the people who lost their homes in Katrina are going to make their mortgage payments.
He then brought up an idea that the govt should put in place a moritorium on mortgages for people who lost their homes in Katrina and that the govt should pay the interest.
I thought that was a great idea.
Plus, he was mentioning that many people have had to max out their credit cards to pay for basic needs. What do these people do now?? They don't have any jobs and thus no income and now the President and his cronies have made bankruptcy A LOT harder.
Critical questions.
UPDATE: Now we hear that Delta is going to file bankruptcy. Big business seems like it can file and get out of trouble but the average citizen will be penalized now.
One of the main reasons for filing was gas prices. Well, damn!! Can i file because the gas prices are breaking MY back too?? I doubt it.
Am I the only one who see's the huge 800 pound gorilla here?
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3 comments:
I have never owned a house, so i don't know, but I do not think this hypothetical will come up.
Must'nt the mortgage or house be insured as part of the financial arrangement?
I know the circumstance that homeowners in Louisiana and Mississippi find themselves in triggers a bunch of financial tricks that are made available --such as making money in retirement and 401Ks available without onerus tax implications. Plus, the governments -- state and federal -- will be pouring kabillions into the area in various ways.
A big business's bankruptcy is so vastly different than an individual's it's a bit like apples and oranges. While there are a host of issues of unfairness here and there, for the most part, the logic of how the laws work is fairly fair. The biggest issue for me with big-business bankruptcies is too much leniency in the law allowing the big businesses to severely screw with pension and other employee benefits.
Also, I am thinking that the victims in the New Orleans area, especially, are likely to have a threat of lawsuits against FEMA. The victims may get luxuriously bought off -- like the 9/11 victims' families. You know: "We're so sorry. Here's three million dollars. Now, shut up."
Tom:
Yeah, the pension issue really rubs me the wrong way.
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