Why the bank didn't want to discuss mortgage contracts

Rednoseranter

"Only God can create something of value out of nothing." - or the Bank of England Quantative Easing?

The other problem is that this is US law - not massive relevance to UK Banking.

ranaihrs

'The other problem is that this is US law'
This is true - however, UK Contract Law is the same - both parties have to provide consideration - in this context I believe it to be relevant and, as I say, I'm sure there was a recent case in the UK but need more time to find info about this.

'or the Bank of England Quantative Easing?'
Hehe - good point. Quantitative Easing is the injection of money by the central bank into the economy, the unfortunate part is that the only value it can take is from the existing money supply.

luckyfool

Don't feed the troll.

ranaihrs

luckyfool, as a Mortgage Advisor, what are your thoughts about this? I'd be interested in your opinion.

luckyfool

I have better things to do with my time to be honest, or at least I should. The whole discussion seems pointless.

struanhellier

ranaihrs wrote: »

the crucial point is that when the contract is signed, the banks consideration is based upon money that hasn't been created yet.

No, consideration is based upon the promise of money. Whether that money yet exists is entirely irrelevant.

A promise is real, tangible and of discernable value and it is of something that will be real, tangible and of discernable value.

I commissioned a hand made guitar once, paid the money and the luthier then set about creating the guitar. At the point of the contract the guitar didn't exist and even the money I paid was in cheque form - in other words a promissory note. Indeed, paper money itself is a promissory note (I promise to pay the bearer . . etc).

This is not remotely surprising given that a contract is precisely an exchange of promises.

Kavanne

the money comes from the bankers sacrificing goats to the hindu god ganesh whilst dancing naked in pentagrams wearing only inverted cross pendants.


Srsly.

opinions4u

Kavanne wrote: »

the money comes from the bankers sacrificing goats to the hindu god ganesh whilst dancing naked in pentagrams wearing only inverted cross pendants.

Can we meet?

:T

ranaihrs

luckyfool wrote: »

I have better things to do with my time to be honest, or at least I should. The whole discussion seems pointless.

What you do with your time is fair enough. If your only input is 'Dont feed the troll' I doubt you'd be able to clarify the issue anyway - a mortgage advisor who has better things to do with their time than discuss mortgages? Cool - :T - well done, and good luck in your career.

ranaihrs

Kavanne wrote: »

the money comes from the bankers sacrificing goats to the hindu god ganesh whilst dancing naked in pentagrams wearing only inverted cross pendants.

That's what I thought initially - sadly, I can find no evidence for this.