- This is a campaign for the Irish government/banks to forgive all or some of the debt of homeowners in negative equity or in arrears
Please read on, and PLEASE LIKE our Facebook page;
Facebook Page
IF THE LINK DOESN'T WORK, SIMPLY SEARCH IN FACEBOOK FOR IRISH MORTGAGE DEBT FORGIVENESS CAMPAIGN, AND 'LIKE' IT
- Current debt levels are unrealistic, we believe the country needs a NAMA for the people
- Moral hazard argument doesn't measure up, we are way beyond that now – and, sure we went in to it with our eyes open, but at SOME level there was an element of being 'conned' into ridiculuous mortgages by banks/politicians/developers/auctioneers/property-porn culture
- The levels of negative equity are so extreme (arguably the most dramatic property collapse in western history) it could be decades before these people become functioning members of the economy again or even to consider something as basic as having a family
- The 'you were greedy' argument doesn't hold up either, I don't claim buying a small apartment in Dublin 18 in 2006 was the wisest move of all time, but it wasn't greedy - I just wanted a roof over my head
- It will be good for anyone who owns a property as it will enable people who bought in the last 5-7 years to consider upgrading if they are having families, and should act as a general stimulus to the property market which will be good for the economy
- If nothing is done we will have a 2 tier society - those who purchased property between 2003 and 2008 and those who didn't
-The economic arguments for a measure along these lines have been laid out by people better qualified by me, firstly Peter Bacon, then David McWilliams, and a major recent article in the Irish Times by TEN Irish economists, including Constantin Gurdgiev and Brian Lucey
- I am not an economist, but there are a few obvious places where the money could be raised - 25 bn euros in the pension reserve fund, they could sell off state assets such as ESB, 130 bn euros in Irish deposit accounts - what would be so wrong with a wealth tax? -I don't set up this group with any sort of left/right bias, the problems are way beyond that, but weren't we supposed to be 'saving the country' by being 'all in it together'?
Another potential solution would be to utilise the 300,000 empty units and let some people upgrade to larger properties (with no extra borrowing) PLUS let some peole downgrade to smaller properties (with a corresponding reduction in borrowings).. It would take imagination and logistics and work, all of which could be good for the economy..
-Obviously people who are in default are in an even worse situation than those merely in negative equity, but many in negative equity are only managing their mortgages by borrowing elsewhere (salaries having gone down so much)- this is unsustainable in the long term - AND HOW WOULD THE GOVERNMENT BE IF ALL 200,000 OF US SUDDENLY REFUSED TO PAY OUR MORTGAGES?
- Those who bought in the '90s or earlier are fine, those who didn't buy at all will be able to buy very cheap properties as soon as the banks start lending, and the younger generation will be able to buy in the medium term future, providing they can find employment, and if they can't they can emigrate - people in negative equity can't even emigrate as rents won't meet the mortgage and selling is not an option
- In the opinion of this group, an urgent Mortgage Debt Forgiveness measure would be a great boon to the country from many points of view; humanitarian, social AND economic. Whatever cost is incurred will be reaped back in the stimulation that it will bring to the economy
- The country is (mainly) in agreement that the ongoing austerity package is necessary to some degree, but a stimulus package is ALSO required - and what better stimulus package than to remove some of the mortgage millstone that is hanging around the necks of many of the country’s 30-somethings and which is causing untold misery
- If you agree, please 'like' our Facebook page, or you can email me at kencowley@ireland.com. We want to 'up the ante' of this campaign, to take stronger action.
Here's the link again. And please spread the word.
http://www.facebook.com/home.php#!/pages/Irish-Mortgage-Debt-Forgiveness-Campaign/157697317608036?sk=info
Thank you.
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