John and Brad wrote:
>>If by loan modification, you mean getting someone else to pay back >>some of the money that you borrowed, you might want to consider that >>it is likely that it will ultimately be average taxpayers footing the >>bill, and whether it is fair that taxpayers who did not agree to your >>mortgage should have to pay some of it off. >cannot be seen as written in good faith. >Williams does not know Nick's story. He simply assumes Nick is a scumbag, and posts accordingly. Well, I have to admit, that the words "loan modification" threw me off too. Usually, I've seen those words associated with folks who wanted a good fraction of the principal written off, vs. refinance the loan being associated with getting a new interest rate for the same amount of money. We refinanced our house 10 years ago when interest rates dropped. Our bank offered it, before another bank could take the contract. And, in John's defense, he did use an if-then clause. Given Nicks circumstances, where he didn't mean that, the rest of the statement didn't apply. But, this whole thing brings up a question I have for John....that actually dates back two years. Let's assume Tom and Bill both want a lone from a bank. Let's also assume neither Tom or Bill have some personal pull with the bank; it's purely a business decision. If Tom is offered a loan at 10% and Bill is offered a loan at 5%, the difference is a result of the bank's assessment of the probability of Tom and Bill paying the loan off as agreed. This is fundamental to several statements about indicators of the start of a credit panic I made years ago. I'm curious John, if you agree with this general understanding that Brad stated, and that virtually every businessman and economist I know agree with, or if you think that there is no way of telling why, say, the interest rate for Greek sovereign bonds is higher than the interest rate for German sovereign bonds, because economics is so complex, one cannot make that inference. _______________________________________________ http://box535.bluehost.com/mailman/listinfo/brin-l_mccmedia.com
