Re: Root of the problem? What Can Be Done To Make Banks Lend?

On Thu, 15 Jan 2009 12:24:32 +0000 (UTC), M Holmes
<fofp@xxxxxxxxxxxxxxxxx> wrote:

Mark <i@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx> wrote:
On Wed, 14 Jan 2009 17:28:24 +0000 (UTC), M Holmes

How can you "not take the risk" of redundancy? (Apart from not
having a job).

You can avoid taking loans which will be at risk of nonpayment after
redundancy. That reduces financial risk.

I agree, but the practical outcome to the person involved is very
similar if they can't pay their mortgage or can't pay their rent. I
wasn't aware that the unemployed get better/quicker benefits if they
rent so this obviously makes a lot of difference.

Yes, it was nine months that a homeowner had to last out before welfare
kicked in to pay (interest only) on mortgages up to a 200,000 limit.
There is redundancy insurance available for debtors which will cover
that period and in my view, it's the debtor's job to get themselves
vovered. If they refuse, they shouldn't be able to call on the taxpayer
to make them good.

Refusal is not the only reason that someone might not have all the
insurances (or is it assurances?). Take myself, for example. I tried
to apply for such an insurance but, owing to a very minor health
problem several years ago, the companies want to load my premium,
thereby make it unaffordable and also poor value.

Rents are payable pretty quickly on welfare (as in a handful of weeks).
Also I think the government has now cut the waiting period on mortgages
to three months for the duration of the crisis.
[...]

They don't however default on a mortgage loan which then requires the
banks/government to come to more prudent folks for a bailout.

They don't *have* to bail them out.

Well I can't find a way to unsubscribe from these bailouts short off
giving up my income and putting myself in the same boat.

You have your income from these "failed" banks?
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