Discussion:Bailout - Is That Forgiveness of Debt Income?
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Discussion Forum Index --> General Chat --> Bailout - Is That Forgiveness of Debt Income?
| 25 September 2008 | |
| Just wondering if the financial institutions giving up the bad debt will create income for them? Of course, if they were "little people" and it was credit card debt forgiveness, that would be income.
Any bets that the banking lobby is all over this and that there will be a special provision that it will not be deemed to be taxable income? Insult to injury for taxpayers. | |
| 25 September 2008 | |
| The govt is going to buy bad loans as long term investments. They are not giving anything away I think. | |
| 25 September 2008 | |
| The govt is going to buy bad loans as long term investments. They are not giving anything away I think. | |
| 26 September 2008 | |
| The reason that it's called a bailout is that no private party is willing to buy the debt. It's likely that the government will overpay for the debt: I am hearing .65 on the dollar, which sounds way too high to me.
If they are talking mainly mortgage debt, and they can get a large team assigned to work-outs, they may do ok, but just ok. I think it would be a pipe dream to say we'll ever recover the amount the taxpayers are ponying up, much less make money on the deal. The real scary part is that the suggestion has been made that the govt. will also buy bad credit card, and student loan debt. This debt is unsecured, with no collateral. You can imagine what will happen to taxpayer money if that happens. Everybody is saying that if we can just fix real estate, we're out of the woods. Reading between the lines of some statements I've heard, I think credit cards will be the next disaster. | |
