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To: Snowshoe who wrote (55304)	11/1/2004 7:28:58 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 74559

Debtors who lose their homes or farms, when they cannot make debt payments, are merely forcing the realization of loss onto those whose money was lent to them. The debtor does lose their "illusion of ownership" over their "bank owned" home or farm. They can also lose their "illusion of equity". This is hardly different from people who "lose their home" to the landlord when they can no longer pay the rent. The thing they are losing, never actually belonged to them in the first place. These concepts can get confused when everything in our daily lives is viewed through the distorted "carnival mirrors" of the Monetarist Fun-House economy. .

To: Snowshoe who wrote (55304)	11/1/2004 11:28:13 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

Snowshoe, Elroy's point is that the lender who loaned the money to buy the house, which is now in default, can't "buy" the house for a song and recoup their money if the value of the house has fallen below the value of the loan. So it's somebody else, who was a saver, not a lender who can vulturize the bargain priced house or shares. Note that a saver who has money in a bank which goes bust because they made a whole lot of loans to house buyers who are bust, will also lose their money because the bank will tell them they no longer have money with which to buy the bargain house. The saver will be the one who has cash in the mattress, government bonds, gold or pieces of eight, or other safe currencies. Which I think was your point. If banks go under, the savers' deposits do too. I think I've got that. Mqurice

To: Snowshoe who wrote (55304)	11/1/2004 3:32:50 PM
From: Ilaine	Read Replies (2) \| Respond to of 74559

Mortgages in the Great Depression were typically for four years, not 15-20-30, and even worse, were callable -- the lender could demand payment in full at any time. Today's mortgages are not callable except in the event of default. Further, bankruptcy laws like Chapters 11, 12 and 13 allow debtors to retain possession of their property and make reduced payments to creditors. People with no property have the option of Chapter 7. And even if you don't have property, you can still file Chapter 13, which doesn't have the time limit to file successive cases like Chapter 7 does (6 years from discharge law doesn't apply in Chapter 13 cases). Just one of the many many reasons why studying the Great Depression doesn't help much in predicting what can happen in America. BTW - people who are having trouble servicing their debts should talk to a bankruptcy lawyer. I have seen so many people forced into bankruptcy AFTER spending thousands and thousands on credit card debt they could have discharged. Credit counselling is a total rip-off.