To: TobagoJack who wrote (82302 ) 10/29/2011 2:26:20 AM From: Maurice Winn 2 Recommendations Read Replies (3) | Respond to Larry Summers has the right idea, for an alcoholic. <"The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending." > And the way to cure a hangover is a stiff gin and tonic. Heroin withdrawal symptoms are quickly resolved with a whiff of opium. After 2 days without a cigarette, one can be quite smoothed out with a drag on a fag. People up to their ears in debt really do need another hit to keep the good feelings going. My experience as a creditor in the industrial markets of the oil industry is that another hit is of no help to anyone once the relief wears off and the even worse situation is faced with even less to come and go on. I have personally [yesterday] taken possession of an empty mortgagee sale apartment at Mount Maunganui. The debtors had got it all wrong. A similar process for all defaulting debtors would move property from those who mismanaged it to those who have the most economic use for it. Lending the debtors still more money would not improve the situation. That's why the mortgagees call a halt and prefer to lose some rather than more. There is a LOT of property for sale in NZ now, especially in the holiday zones where second homes, mortgaged, were bought to make money via capital gains while holidaying. Prices are down by 40% from the peaks. In central Auckland, prices are not down at all. Mqurice
