Morgan Kelly suggests that debt forgiveness will cost only €6 bilion

[Brendan Burgess]

I'm presuming 116 Bn is the book value - lets assume this is the max value - 2007.

Not at all. This is the value of mortgages outstanding to owner occupied home owners at 31 March 2011. It says nothing about the value of the homes. It is not a historic figure. It is today's figure.

 

[onq]

Thanks for clarifying.

Then I echo Sunny's comments.

We need to see where the figures come from

 

[onq]

Update:

The Government's position today, distancing itself from Willie Penrose position.

http://www.examiner.ie/breakingnews/ireland/govt-plays-down-debt-relief-speculation-517425.html


While Sean Gallagher supports it, saying it has been "repeatedly raised by voters"..

http://www.irishexaminer.com/breakingnews/ireland/gallagher-backs-debt-forgiveness-calls-517477.html

 

[Brendan Burgess]

Now Joan Burton seems to be supporting the idea, although it's not really clear what she is proposing.

[broken link removed]

Minister for Social Protection Joan Burton has called for a debt resolution scheme to allow struggling mortgage holders reach a deal with banks and avoid going to court.
Ms Burton said banks needed to show that they were willing to settle in a realistic way with the thousands of homeowners in distress.

 

[Brendan Burgess]

But Eamon Gilmore has ruled out widespread debt forgiveness on Drivetime.

 

[Purple]

I don't think Joan Burton's comments are at odds with Gilmore's or FG's. She is correct when she says that banks have to be realistic when dealing with people. It is no use pretending that a debt isn't a bad debt. If the banks were more rational and realistic on a case by case basis there would be less pressure for some grand scheme to forgive debt.

 

[Brendan Burgess]

If the banks were more rational and realistic on a case by case basis there would be less pressure for some grand scheme to forgive debt.

Good point! They probably could defuse the calls for mass debt forgiveness by sorting out the people with unsustainable mortgages.

Brendan

 

[onq]

Given that we seem to be talking in big figures still, is there any indication that the banks have started to address the matter at this level of detail?

 

[Wayne1966]

Quote:
Originally Posted by goingforgold
This is exactly what will happen. As I said previously, it is happening already in anticipation of such a move on debt forgiveness.
Im seriusly wondering why do i bother paying mine, bought in 2009 and havnt missed a payment. No i hear i could have bought a bigger house, paid less, or nothing at all and have a big chunk taken off it! Crazy stuff.