IMF urges debt forgiveness for indebted mortgagees

vivatifosi

I can't help wondering if this isn't the IMF inadvertently holding a lens up to itself and showing us what really goes on inside.

The IMF always has been run by the first world. It has been quick to foist austerity programmes on under-developed and developing countries with a level of pain that we (hopefully) will never see here.

Yet when austerity knocks on our door, we don't want to take the same medicine. To misquote Chrisine Lagarde, "quelle surprise".

IronWolf

I'm lost for words at how ridiculous this suggestion is.

abaxas

Any format of debt forgiveness and the UK is fooked.

If it's better to not pay it back, why pay it back at all.

CRASH_BANG_WALLOP

those dudes in debt took a gamble. it has not paid off. thats life. time to face up to it

wotsthat

Generali wrote: »

It's the flip side of the coin and ultimately it will happen. Either through 'financial repression' (e.g. forcing interest rates down to uneconomic levels by market intervention such as QE) or by straight forward confiscation.

A direct transfer from the 'frugal' to the 'indebted' is unpalatable but I don't know why there's the outrage. It's already happening indirectly. Existing mortgage holders are seeing their debts eroded by inflation and enjoying low interest rates. Savers, who leave their cash on deposit, have been getting negative interest rates for a while.

It can't be a co-incidence that more pensioners than ever are starting their own businesses - this is entirely sensible. Low interest rates should encourage those with capital to release it looking for better returns - if they won't then it's going to continue to be 'confiscated'.

It's a good job the boomers did so well otherwise there wouldn't be any wealth to transfer down in advance of their deaths.

Mr._Pricklepants

It's a great idea.

Instead of throwing billions per year in the bottomless pit of welfare, give the engine of the UK economy (aka the homeowners) a break and it will flow back through higher spending.

ess0two

Going4TheDream wrote: »

It is attitude to debt and spending that needs changing for many people, and not to encourage the mantra of 'someone else will pay'

What ever happened to personal responsibility?

Exactly and it was'nt that long ago this site was providing templates and advise to get out of paying CC / Loan debt.

Generali

wotsthat wrote: »

A direct transfer from the 'frugal' to the 'indebted' is unpalatable but I don't know why there's the outrage. It's already happening indirectly. Existing mortgage holders are seeing their debts eroded by inflation and enjoying low interest rates. Savers, who leave their cash on deposit, have been getting negative interest rates for a while.

It can't be a co-incidence that more pensioners than ever are starting their own businesses - this is entirely sensible. Low interest rates should encourage those with capital to release it looking for better returns - if they won't then it's going to continue to be 'confiscated'.

It's a good job the boomers did so well otherwise there wouldn't be any wealth to transfer down in advance of their deaths.

Savings are just another form of debt though. If you are going to forgive some of the debts to get the system going again you have to lose some of the savings too otherwise all you're going to do is send the banks bust again.

Graham_Devon

Why not just print us say 10k each to do what we like with?

Would get around the moral injustice. Though probably wouldn't prop the housing market up, so I guess that's out.

wotsthat

Graham_Devon wrote: »

Why not just print us say 10k each to do what we like with?

Would get around the moral injustice. Though probably wouldn't prop the housing market up, so I guess that's out.

You might argue that it's a moral injustice that some people hoard wealth that they'll never need.

It won't happen in the way you envisage though i.e. government raid on your savings to pay off my mortgage. Incentives will be put in place to encourage people with wealth to get rid of some though.

I'd find it much more palatable, for example, to pay off my children's future mortgages than some random debt junkie's. Negative savings rates already encourage this behaviour.