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  • #10
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    if the banks willing to sell the debt at such a low reduced price, why can't a person who owns the original debt just pay the reduced pricing get out of it
  • #12
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    i normally do not agree with things that you say but you have as great point here . You are a logical thinker .
  • #14
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    Well just to help you out, "bsking"...That's exactly what is happening in this story...Take for example a $1,000.00 debt. And lets say that Occupy bought it for $5 bucks. they can then turn around and tell the original debtor --"hey, look if you give us $5 bucks, we will consider your loan paid in full and wipe the slate clean of the original debt, report it to the credit bureau as " settled/paid in full"...And it will be forever retired. The debtor says ok...its done. Then the Occupy group gets that five bucks back to buy another $1,000.00 debt and make the same offer to the next debtor...That is the Whole Point and Idea of the Story, mr. bs...Got it now?!?
  • #16
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    @bsking yes you do but you make alot of sense . If everyone wasn't so hostile here on the forum i would love to meet eveyone in a open setting and have a real live debate only problem would be someone would insult someone so bad that it may come to blows . lol
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  • #26
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    While Sonny makes a fair point it's not quite that cut and dried. The banks could rewrite the loan at sustainable levels and then write of the remainder as bad debt but they don't. We think of "deductions" as we get to take 5.00 off for what we gave to charity. Not 5.00 less tax but 5.00 off of taxable income. The banks get to write off bad loans dollar for dollar against profit. It makes them more money to write off bad debt en masse RIGHT NOW. In the old days corporations had 5, 10 and 20 year profit plans. Today they have quarterly profit gouging. As Deep Throat of Nixon fame said, follow the money, always follow the money.
  • #30
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    That's right, jessejaymes...And its usually at that 120 day time frame that most of this stuff is written off. And by them "bundling a bunch of paper" they can just sell that "written off" debt to a wholesale debt-buyer. Enjoy their write-off against profits, a small token payment for the unloaded debt, and not have to spend a lot of money paying staff to try to collect what may very well ultimately end up as a few pennies on the dollar anyway. Its funny though because the "collection companies" who by this stuff---often do try to collect at the face-value of the debt---including all additional interest and fees..that has been factored into this bad paper....They then "offer the debtor" a "partial payment to retire the loan"...Which after all the interest, fees, charges, and fiat money added onto it...usually turns out to be fairly close to the original amount in the first place...In many ways its a real "racket".
  • #31
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    @Sonny Obviously someone looses big for this. Any guesses who? The banks?... no, they just raise the rates. The end game looser for this scenario ARE THE PEOPLE who are responsibly paying their loans back.
  • #32
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    @Sonny It is a racket and it's a racket perpetuated by our Govt as well. When they took in all those Fannie Mae and Freddie mac guaranteed loans they could have also rewritten those home loans at current market values and retired about 3/4th of the money the Govt lost but they didn't do that. They just ate the whole thing and put people out of their homes. That's not good economic government.
  • #35
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    @Jasonopolis I understand your point. But this is what we have "always" done in our financial system. People have built companies, and become millionaires doing this stuff. But ultimately a lot of debt is paid back and placed back into the economy at some point or another...That's why you see so many new "collections companies" springing up every year...I don't see any adverse effect on the people "who are responsibly paying their loans back"...They are rewarded by getting the best rates for new loans (or able to get a loan at all)...
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  • #20
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    They are actually doing a lot more then you think. Google "Occupy Sandy"
    They were a bunch of young kids who were pissed off at the inequality and the screwed up economy. They knew the system was broke and knew it needed fixed. They just didn't know how to fix it. They organized and found like minded people. Now they are trying to make a difference with simple and logical ways.
  • #22
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    @Cheenoguy Not sure what that has to do with the Occupy movement, just sounds like citizens doing some productive actions.
  • #27
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    @woodtick57
    The Occupy movement started Occupy Sandy and the loan program. They realized the establishment isn't helping and that they can't take down the establishment and change will be slow. So they decided to just start organizing their own organizations to help victims.
  • #34
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    @Cheenoguy See, they should have just done those things in the first place instead of wasting time with the Occupy movement, which did nothing.

    these seem like real, productive organizations. Occupy was pointless.
  • #36
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    @woodtick57
    Because they were young frustrated and confused. They knew there was a problem and knew that the governments and the 1% were largely the problem. Sometimes it makes you feel more empowered to stand and loudly declare your desire to fix it.
    The original Occupy movement was simply these kids finding themselves and each other. Now that they have started to figuring out how to make a difference they are.
    Had they just sat at home bit$&ing on the Internet none of the good stuff ever happens.
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  • #6
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    "Some critics wonder about the fairness of Occupy's plan to help debtors. Slate's Matthew Yglesias asks why, given two poor families, the family in debt is more worthy of assistance." - If you can't help everyone, why help anyone? Pretty weak.
  • #88
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    Nice Good Sam neighbor efforts but a drop in the bucket. The whole debacle was mostly brought about by cronyism between big financials and the regulators who looked the other way on the derivatives scam. Then those politicos who pushed things like NIJA loans via the Community Reorganization Act are also culpable. Jerks like Chris Dodd and Barny Frank exasperated the situation buy throwing reforms by the Republicans under their committee tables.

    It's not Wallstreet is big financial street and the K street connection. And most of the Quantitative easing of the bailouts went to those big financials who then just sat on the money as they had dismal prospects of the economy under Obama. Voting for Santa Clause will not bring a real economic Christmas about, they'll take the milk and cookies leaving coal in your stockings. It's why Europe is going under water.

    Occupy Congress and end the crony K street connection and all the unsustainable freebes. Cut down on the waste and fraud that runs throughout the govmint, eliminate departments like the American Federation of Teachers. Have a real balanced budget.
  • #75
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    A few occupiers bail out a few people and we forget that Obama bailed out the banks. Obama is a the same excrement that Bush was. He is a member of the same secret organizations. His school records will never be released lest you see the connection. The banks of the federal reserve are making more money in this engineered crisis than the total GDP of the world for the last forever years. He is their number one guy.
  • #65
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    Well then, there is no reason why I couldn't hire an attorney, have him/her contact China, call the U.S. government for payment in full, buy it for a penny on a million and evict everyone in the White House and every other government building. Hold the election again, with me in certainly in charge, I would have to approve the fellow in the White House (Romney) and I would hire the remainder of the base.

    Then I would gain control of the media and colleges, I would carry a big stick! Ha! Then I would hire the Donald to get rid of all government payments, medicare included. Then I would make Obama drive a Smart Car for the rest of his life, Michelle too. They would not be allowed to eat any fast food. I would make him quit smoking. I would make Nancy Pelosi repent all the dishonest things she has said, over and over, with Chris Matthews on PBS. Funding to PBS would stop.

    I would make Ted Strickland undergo psychiatric evaluation and treatment for all of the damage he has done to Ohio. The unions would be closed. No political donations will be accepted for democrats, I would close that up also. The states would determine if there were to be abortions. The pipeline to Canada would be welcomed. I would beef up the military! Eric Holder would be tried for all of his probable crimes with a conservative jury of my choice. Obama and Hiliary would also be investigated for Libya. GITMO will remain open. The media would apologize to George Bush. I would scold George over a few things. Barney Frank would be held responsible to the housing crash. Foreclosures will be completed in one month and I would approve loans for homes.
  • #66
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    In addition, no more Botox for Nancy, her face with fall within 90 days. Obamacare would be removed. Obama would have to quit smoking, no smoking in the Smart Car. Axelrod would always have two eyebrows versus one monster eyebrow, he scares children. Hiliary will need to take a diuretic for her cankles.
  • #64
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    What kind of student loans are they buying? Loans for people who majored in Art History, Women's Studies, International Studies, and all the other completely useless liberal arts degrees? It's the fault of the liberal arts colleges and their admission advisers pushing these stupid degrees that should be made accountable for tricking kids into wasting 4 years of their lives and tens of thousands of dollars on degrees that have little if any chance of landing them a job that could pay back the tuition.
  • #49
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    Wow whatever happened to personal responsibility? Why should people who make poor financial decisions be bailed out while the rest of us who live within our means suffer?

    I'd love to own a $300k home, but I couldn't afford it so I bought something I could afford.

    I knew I couldn't afford over 100k in student loan debt so I lived a very frugal lifestyle in graduate school and took a job that had federal loan forgiveness after so many years of service.

    Don't borrow what you can't afford to pay back and if you do then don't kavetch when you are raked over the coals and forced to pay it back.
  • #45
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    Isn't this what started the whole financial meltdown in the first place?
    Banks gave out loans to borrowers who couldn't possibly pay it back but they didn't care because they could just bundle all of the worthless paper and sell it with the backing of Fannie and Freddy who would guarantee it. The bankers made money as they passed the debt along but when the guy at the end of the line couldn't collect (because a guy make 25k with a 300k mortgage was bound to go belly up) everything fell apart.

    I guess Occupy Sandy will learn the hard way that when you're the guy getting stuck with all of the bad debt at the end of the line, you'll have a financial meltdown.
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