We’re not Irish - Greek courts start wiping out all personal debts without Bankruptcy

['orebel]

Maybe I'm a bit slow tonight, but could you explain this to me.
If person A's property is worth 5m and the debt is forgiven surely his profit is the same proportionately to person B's.

Anyone?

[blindjustice]

This would create huge holes in bank balance sheets and cause bank runs.
People with deposits would lose them unless the govt stepped in again.
Billions more would have to be borrowed to plug the gap.

It would be a lifestyle subsidy paid by those who couldnt, didnt or was too young to get a mortgage during the boom.

[Victor Meldrew]

Maybe you do not understand debt write off? It is quite straightforward. Once it is written off it is removed from the balance sheet.

So who pays back the debt the bank have as a result of lending you the cash for the second home, BMW and credit card debt?

until that is written down, the other is just one big moral hazard and the public pay...

Also, whatever about REDUCING reckless mortgage lending, personal LIFESTYLE debt should not be written off. Why should I pay for someone's new kitchen and car. I know I can't afford those things, so i don't buy them with credit..

[toratoratora]

Maybe you do not understand debt write off? It is quite straightforward. Once it is written off it is removed from the balance sheet.

There are so many assumptions in your post that I do not know where to start. Suffice to say that somebody does 'not' have to pay if the debt is written off. Basic stuff folks.

Please educate me? A Public Servant? The Red Cross? An Insurer? A Central Bank? David Cochrane? The 'Taxpayer'?

I thought the ECB was the lender of last resort but lately I am thinking that the Irish taxpayer is the payer of last resort for the entire Eurozone. It's amazing what Enda will do for a pat on the head from sarkozy.

The bank can dispose of some assets to cover its losses, seems straightforward enough.

Erm, you're joking me, right?! Stop digging now, please, it's embarrassing.

[Dan_Murphy]

Maybe I'm a bit slow tonight, but could you explain this to me.
If person A's property is worth 5m and the debt is forgiven surely his profit is the same proportionately to person B's.

Anyone?

Sorry, but I don't understand your question. In proportion to what? His recklessness?