Where has the money gone?

Royboy39 · 03-03-2009, 23:04

This is a question that has been asked many times but remains unanswered.

The blame has been put on the US banks for the downfall of many economies in the world and the global downturn.

If a mortgage is granted a charge is laid on the property.
Bricks and mortar are supposed to be the foundation of all we believe in.
A mans home is his castle.
If a house is repossed for any reason it is my understanding that the house be sold to pecoup the loss to the lender.

Where has the money gone?

Mancie · 03-03-2009, 23:09

Now that is a good question... were does it go... prices go up because the price to transport goods has gone up.. the price of food goes up because the price of feeding livestock has gone up....companies lose billions.. if there is a loser then there must be a winner... so were has the money gone?.. who are the winners?... at some stage someone is making a hell of alot of money out of all this!

cashman · 03-03-2009, 23:20

it is a good question, beats me.

what really confuses me also, is all these debts the banks buy up or sell off, who in their right mind buys debts?

Mancie · 03-03-2009, 23:25

Mind you.. perhaps quite abit of it disappeared into Royboy and Cashy's pension funds!!

MargaretR · 03-03-2009, 23:31

Chunks of it went on buying Porches, designer gear, and gourmet meals with champagne

Benipete · 03-03-2009, 23:33

Well it all began when bankers started lending money to people that could not pay it back and we are talking tens of thousands for property that was worthless but the bankers had done the business so took the commission.

They then sold the mortgages on to other finance company's for a fee who thought they were on to a good thing,once again taking bonuses and comm. worth millions.

It only came to light when one idiot decided to find out exactly what they had by now spent billions on and found property worth nothing.

Seams all the top bankers still got paid bonuses and comm. worth billions for sales that were worthless.

So all the people that borrowed billions between them have legged it.

Hope that helps.

Benipete · 03-03-2009, 23:35

Quote:

Originally Posted by cashman

it is a good question, beats me.

what really confuses me also, is all these debts the banks buy up or sell off, who in their right mind buys debts?

We all have £33,000.00 each - Have a nice day

Mancie · 03-03-2009, 23:41

Quote:

Originally Posted by MargaretR

Chunks of it went on buying Porches, designer gear, and gourmet meals with champagne

eh Margaret... was that supplied under the freedom of information act on Cashy's pension fund?

SPUGGIE J · 04-03-2009, 06:15

So now that the money has evoporated, houses aint worth owt, shares are worthless, pension funds are empty the govenment is technically bankrupt what the hell are we going to survive? Printing more cash aint going to work as this can, even with low intrest rates fuel inflation. After world war one Germany tried it and ened up in a real mess. If we think its bad look at what happened in Zimbabwae. There are little clubs popping up in the states that wiegh in there old gold to make a few bucks as they reckon gold bullion is safe. So do we go the sameway or spend all our time in and out of the pawn shop?

jaysay · 04-03-2009, 09:02

and lets not forget that the Iron Chancellor Gordon sold of our gold reserves, and yet we still end up with a couple of Trillion pounds of debt, have a nice day

Royboy39 · 04-03-2009, 14:25

Quote:

Originally Posted by SPUGGIE J

So now that the money has evoporated, houses aint worth owt, shares are worthless, pension funds are empty the govenment is technically bankrupt what the hell are we going to survive? Printing more cash aint going to work as this can, even with low intrest rates fuel inflation. After world war one Germany tried it and ened up in a real mess. If we think its bad look at what happened in Zimbabwae. There are little clubs popping up in the states that wiegh in there old gold to make a few bucks as they reckon gold bullion is safe. So do we go the sameway or spend all our time in and out of the pawn shop?

I fail to believe that the houses are worth now't....The people who have been thrown out of these houses must need somewhere to live so why not offer them on rental agreement at a reduced. affordable rent. Better generating revenue than writing them off as 'Toxic Assets'.
Someone, somewhere is sitting on a goldmine. If they have been written out of profits and discarded, the answer still remains: Who owns them and who is going to profit in the end?
I cant imagine for one minute that the properties are being handed over for nothing on a first come - first served basis.
The ground they stand on is a tangible asset or is that to be classed as toxic as well?

claytonender · 04-03-2009, 14:48

I have no idea about the situation in the US - maybe both the land and buidling on the land is 'toxic' having been built on land that was unsuitable for house building.

But from what I have heard, about the massive losses posted by the former HBOS - they have put evrything that might be remotely classed as a bad debt into their latest figures. Possibly some of that debt might be repaid at some time - which would then make their profits look better when it is repaid, because if it has been written off once any money received would be a 'bonus' to the bank.

Here in the UK the land would have some value, as would the property on the land, but only if -
a) someone wanted to buy it and
b) there was money available to buy.

As regards where the people whose homes have been repossessed have gone too - I can't answer, they have possibly moved intot the private rented sectoe. But, I can tell you that currently in Hyndburn there are appox 2300 empty properites. And I have been trying to find out if this figure includes houses that are for sale by the mortage companies.

Margaret Pilkington · 04-03-2009, 15:04

What gets me about this toxic debt is, the government have nationalised the debt, but not the profit making elements of the banks.
Perhaps it would have been better to give every current tax payer a share of the money that was given to the banks to bail them out.....at least the money would have been circulated....people would perhaps have spent it on refurbishing their homes(jobs for local traders)....or bought a new car(again ensuring the manufacturing sector stays solvent) they may have paid off their mortgages....getting rid of debt.
Instead the banks have taken the money and done precious little to help businesses, communities, and their customers.
Money needs to constantly flow to do the work that is necessary to ensure good financial stability.

Royboy39 · 04-03-2009, 15:04

Quote:

Originally Posted by claytonender

I have no idea about the situation in the US - maybe both the land and buidling on the land is 'toxic' having been built on land that was unsuitable for house building.

But from what I have heard, about the massive losses posted by the former HBOS - they have put evrything that might be remotely classed as a bad debt into their latest figures. Possibly some of that debt might be repaid at some time - which would then make their profits look better when it is repaid, because if it has been written off once any money received would be a 'bonus' to the bank.

Here in the UK the land would have some value, as would the property on the land, but only if -
a) someone wanted to buy it and
b) there was money available to buy.

In the first part or your post.
Your not suggesting banks are bent are you?

In the UK only a small parcel of land which a house stands on is worth money and I understand where you are coming from.
In the US we are talking about whole estates where people have lost their houses. Parcels of land like that just cant be written off, surely?

cashman · 04-03-2009, 15:08

Quote:

Originally Posted by Royboy39

Your not suggesting banks are bent are you?

thats the beauty of being answerable to no-one i can say they are well bent.