Comments

Attention Homeowners: The Bank Does Not Own Your Bond…or You! — 9 Comments

  1. Brilliant article issued by NewERA. Explains it so that it can be understood. I have re-posted as i believe that it may apply to many in Knysna under economic siege.

  2. When a credit default swap is triggered, it means that the insurance company is paying for the house instead of the homeowner. The swap paying out is triggered by the homeowner failing to pay; why should that failing debtor keep the property that they aren’t making payments on? I don’t follow the logic in this article.

    • 1. Banks are not allowed to loan money they do not have.
      2. Banks must be transparent.
      3. Bonds are insured several times over as packages become part of other packages.
      4. Points 1+2+3 = we do not know what the real value of anything is anymore.

    • I’m not removing responsibility from homeowners in debt. People should not take credit they can’t afford. But i do see creditors as a more fundamental problem than debtors.

    • It is simply business to them. You can apply at every bank. All have their own criteria for judging whether you are “worth” giving credit to.