Repo Man

1. Why would a bank make a secured loan to someone they know can’t afford it? Because they can collect interest for a while – and then repossess the property.

2. Why would anyone continue to loan money to Barack Obama? See answer to question 1 above.

About stevengoddard

Just having fun
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8 Responses to Repo Man

  1. gator69 says:

    “While it is technically possible for a bank to make a profit from a foreclosure, foreclosures generally appear as net losses on bank balance sheets. When banks foreclose on a house and then sell it, the bank receives the money from the sale but the amount is usually less than what the bank originally loaned to the homeowner.”

    http://www.ehow.com/info_7746035_do-banks-make-money-foreclosures.html

    There are many costs involved with foreclosures, and this is what prevented banks from making bad loans, until the Democrats put a gun to their collective heads. Banks are as a rule are risk averse, the housing bubble was a creation of idiotic vote buying politicians. Like Obama.

    • Josh says:

      +1 You nailed it. Banks don’t want to foreclose, they want to be repaid. In response to the main post – not sure what US debt holders are going to repossess. And, Congress could repay the debt tomorrow. They have the authority to mint money. They could mint a 17 trillion dollar coin. It would freak everybody out and there would be a total loss of faith, likely resulting in big inflation, but it could be done.

  2. Edmonton Al says:

    China has loaned the US enough to bring down thr good ole’ USA if they decide to sell.[theirdebt]
    Maybe the government should get another UN IPCC [International Panel for China Claim]
    To hire 4000 economists to run some computer models, to see if the USA is still a country in 2100?

  3. Climatism says:

    One of my favourite movies of all time ;p

    “Bud: [doing speed with Otto] Never broke into a car, never hotwired a car. Never broke into a truck. ‘I shall not cause harm to any vehicle nor the personal contents thereof, nor through inaction let the personal contents thereof come to harm’ It’s what I call the Repo Code, kid!”

    ))

  4. Beale says:

    I don’t get this. What is the security for government debt, and how would would someone repossess it?

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