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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (91273)	6/9/2012 4:45:40 AM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 218005

The best solution for mortgagees and underwater mortgagors is to come to some arrangement whereby the "owner" can stay in "their" house, while the mortgagee gets as much money as the mortgagor is willing to pay for the privilege of staying where they are, thereby retaining convenience, pride of ownership, avoiding transaction costs and whatever else they value about the property. It isn't really in the mortgagee's interest to turf the existing owner out to be replaced by somebody who just wants a really cheap bargain. The two most logical parties to the property are the existing owner and the existing mortgagee. A replacement mortgagee would likely assign little value to the loyalty of the existing owner and would bid a low price for taking over the mortgage, such that they could simply turf the owner out and flog the property off to whoever shows up at an auction. Because mortgagees don't get a vote and there are many underwater mortgagors, it's likely that politicians will decide to rob mortgagees and hand the proceeds to the house owners. That will mean future mortgagees will NOT lend money to prospective house buyers unless they have a large deposit to ensure the mortgagee doesn't end up ruined by the politicians stealing their property. Lending 105% on a property to people with no visible means of repayment was hardly sensible, so such creditors should reasonably expect to lose their money and that's what has happened and will happen. Creditors have to use reasonable judgment to avoid such losses. They did not use reasonable judgment. Alan Greenspan KBE was shocked that such mortgagees were so careless with shareholder funds. Shareholders should maintain a closer watch on the managers they employ and not pay them huge bonuses for running the company into the ground. Mqurice

To: Snowshoe who wrote (91273)	6/9/2012 7:52:50 AM
From: elmatador	Read Replies (3) \| Respond to of 218005

Brazil to bailout Spain? King Juan Carlos, Santander and Telefonica ask Brazil President for help Brazil to bailout Spain? King Juan Carlos, Santander and Telefonica ask Brazil President for help Posted on June 8, 2012 · 8 Comments When a king leaves his throne to urgently fly to Brazil, as the king of Spain Juan Carlos did this week, something is in the air. As the world already knows, Spain is experiencing the most serious financial crisis in its history, with the unemployment rate above 20% and banks in need of almost 100 billion euros of capital injection. This is pretty much the context in which king Juan Carlos and his entourage (mainly made of Santander and Telefonica’s executives) went to Brazil and met with President Dilma Rousseff. But sources close to the Brazilian president said the King’s business proposals were somewhat “indecent”. Santander News site Folha reported yesterday that, at this same meeting, Santander’s President Emilio Botin offered President Rousseff to sell a 10% stake in Santander to Brazil’s public bank Banco do Brasil (BB) in exchange for a few billions. Allegedly, this partnership would link BB to Banco Santander’s headquarters in Spain, not its Brazil operations. But rumors spread out are that the Brazilian government is definitely not interested in the transaction, especially one that looks like a bailout in the midst of a crisis. Despite the negative, BB is preparing a formal letter to reject the deal, for diplomatic reasons. Telefonica But more “indecent” was the request made by the President of Spanish telecom group Telefonica, Cesar Alierta, who was also part of King Juan Carlos’ entourage. The chief of the telecom group, owner of Brazil’s Vivo, asked Dilma to facilitate visas for Spanish workers. As Telefonica plans to cut 6,000 jobs in Spain, a potential solution to minimize the negative impacts on Spain’s already lagging economy would be to transfer these employees to Brazil. Since 2007, approximately 11,000 Brazilians were stopped while trying to enter Spain, a number considered high by Brazilian authorities, who slapped back the Spaniards and adopted the so-called “reciprocity measures” by implementing stringent measures for the entry of Spanish tourists in Brazil. Hence, this last request made by Telefonica was considered indecent to Brazilians. Though it seems that both governments are working to solve the issue.