tag:blogger.com,1999:blog-6244999628674918029.post2298343617066240707..comments2024-03-28T13:53:04.287-05:00Comments on Bayou Renaissance Man: For once, an 'Occupy' proposal I can support!Peterhttp://www.blogger.com/profile/10595089829300831372noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6244999628674918029.post-11463542902826494382012-11-12T12:19:37.323-06:002012-11-12T12:19:37.323-06:00I don't think they have the level of control y...I don't think they have the level of control you want them too.<br />They have to buy something like a mortgage backed asset and then forgive all the mortgages. If they buy the really cheap stuff, it means they are buying the stuff people have already defaulted on.<br />They will help some good people, but they will help some undeserving people as well.<br />The coolest thing about it though, is that the government needs these debts on the books in order to continue the charade that we have any money. If they can make any significant amount of it disappear, they are counteracting the FED and the money multiplying that the inflators are counting on.<br />Augusthttps://www.blogger.com/profile/08758314961163692341noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-50883696995039454002012-11-11T08:56:14.221-06:002012-11-11T08:56:14.221-06:00Of course, if the debt is more than just forgiven,...Of course, if the debt is more than just forgiven, but is in essence a renegotiation of the amount owed or paid off in non-cash manner???... perhaps by having the debtor perform some service for the new debt holders.<br /><br />Needs to follow the well-accepted IRS principles of purchase price adjustment... see IRC 108(e)(5).<br /><br />Or if the debtor pays the third party the market value of the debt (which is far less than the face value)? So long as the third party is disinterested and not related ...<br /><br /><br />There are ways that it might work.ruralcounselhttps://www.blogger.com/profile/09193188081686431709noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-64301715023468734142012-11-10T20:39:12.727-06:002012-11-10T20:39:12.727-06:00I'd suspect that such debt bought for pennies ...I'd suspect that such debt bought for pennies on the dollar is going to be unsecured debt- student loans, medical bills, credit cards, etc. Mortgages and vehicle loans would have been handled through foreclosure and repossession.<br /><br />Even so, this is a neat idea. While I'm not all that eager to jump in on my own hook to do this, it's the first useful thing we've seen out of the Occupy folks yet. Instead of demanding people give them things, they are actually doing favors for others. Good for them.The Raving Prophethttps://www.blogger.com/profile/08830254881182697135noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-89154669192879421822012-11-10T08:21:47.217-06:002012-11-10T08:21:47.217-06:00Better to owe the KGB (I mean IRS) $300 than to ow...Better to owe the KGB (I mean IRS) $300 than to owe MasterCard $1000. Forgiven debt is considered income, whether settled with the bank or with an individual. This way they owe only the tax.joehttps://www.blogger.com/profile/14981428927321701616noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-21705812569465066332012-11-10T06:49:05.511-06:002012-11-10T06:49:05.511-06:00Doesn't sound like they've thought this on...Doesn't sound like they've thought this one thru - cancel the debt and the IRS deems that to be taxable income to the borrower.Anonymousnoreply@blogger.com