Fred owes 5k to Bank A for a car loan.
Fred owes 175k to Bank B for a home loan / mortgage.
Fred owes 2k to Bank C for his overdraft / plastic.
The car loan from Bank A was made at an interest rate of 9.5%, the home loan from Bank B was made at a rate of 4.25%, the overdraft/plastic from Bank C is 13.95%
Three separate loans, three separate legal contracts, three separate incredibly powerful potential opponents.
Fred, or Freda, has goldfish memory, he cannot remember ordinary vehicle purchase loans running at 33% APR… I can.
Fred, or Freda, also suffers from massive ignorance, if Bank A sells Fred’s debt to Bank C, then Fred can forget all about any arrangements or contracts he had with Bank A, they all expired, the only thing left is the debt.
Bank C can say to Fred “Pay us in full, NOW!” or they can say “Everything is staying the same, except we are charging you 25% APR interest on your outstanding balance, not the 9.5% you were paying.”
Fred or Freda cannot stop Bank A selling his debt / contract to Bank C, if Fred / Freda doesn’t like it the only real option is to pay off the debt in full, and yes, there will be an extra “arrangement fee” to do that.
Fred or Freda cannot enforce the terms of a contract between Fred(a) and Bank A, upon Bank C, as they are not named in it, Bank C bought the debt from Bank A, Fred(a) wasn’t part of that deal legally either.
Once Bank C hold’s Fred(a)’s debt, then that debt is the only thing that has survived the transition from Bank A to Bank C.
Bank B now notes that Fred(a)’s financial situation has changed, eg loan payments have just gone through the roof, making the outstanding mortgage more risky, and more risky loans = higher interest rates, so Bank B increases the minimum monthly payments Fred must make.
In the “last” recession I had a friend, he had a great business, it employed 12 people, cash flow was good, order books were full for nearly 18 months, he was doing great, naturally enough he used Bank provided finance to make everything simpler and easier and smoother, but see above, cash flow was great, order books were full for the next year plus, all 12 staff were working and making him a profit, he was making all his payments on time and had cash deposits as well.
The Bank called him in, sat him down, and called in ALL his loans, which closed his business, put 12 men out of work and left his customers on the order books having to find a new contractor etc etc
The Bank manager told him, unofficially, plain as day, “Fred, we (the Bank) did not call all your loans in because you could NOT pay, but because you COULD pay… we need the money…”
This, like a certain bank offering me a vehicle loan at 33% APR are not mythical fairy stories, this shit happened in my lifetime not ten miles from where I sit right now.
The fact is people today not only lack clue #1 about the true nature of debt, they also lack clue #1 about the true nature of Contract Law, and they lack clue #1 about the Golden Rule, he who has all the gold makes all the rules…
Fred(a) vs Banks A/B/C in various Courts, arguing that Fred borrowed the money for the car from Bank A, and that should be that, is an unequal battle, a non starter, it is going to do nothing except pound Fred(a) even harder into the ground.
Those of us who are not Fred(a), those of us who always understood that percentage interest on loans is an Exponential Function mathematically speaking, those of us who always understood that the Bank has more lawyers than I have hairs on my head, those of us who always understood that a loan from a bank for a car was a contract, and just as I can sell the car at some future point the Bank can sell my debt at some future point, those of us who always understood that THE LOAN HAS YET TO BE WRITTEN THAT DOES NOT CONTAIN A PROVISION ALLOWING THE BANK TO DEMAND IMMEDIATE AND FULL SETTLEMENT FORTHWITH, are those of us who relatively speaking owe sweet fuck all today, view what the rest of us are doing as some sort of cross between boarding a train that is already involved in a slo-mo train wreck, and jacking yourself up with the latest wonder drug which is nothing more than rat poison with a label stuck on it saying “Wonder drug” and obscuring the rat poison label… barely…
Indentured Servitude is an evil thing, and yet it appears that all those who have the gold have to do is offer the screaming masses a iphone and a large screen TV and a new model Ford on easy easy terms, and Fred and Freda will willingly take the first steps on the short and slippery path to Indentured Servitude.
Hi Afor.
What you say is true, but how are you supposed to buy a property if you don’t get a mortgage? I am renting now, but would like to stop doing it some time in the future.
Thanks for your blog!
Comment by Gerard — January 1, 2012 @ 1:51 pm
Who says you are “supposed” to do anything….? Think about it.
Comment by wimminz — January 1, 2012 @ 1:54 pm
what we are seeing today is likely the collapse of the exponential function. They may be able to kick start (debt) growth again, but it will sag, as exponential functions can’t be sustained in the real world of finite resources. Only in the fantasy world of paper money.
I don’t know much about debt, because I don’t carry debt, but i suspect debt works differently depending on the country, and type of loan. Here in the states, most debt is easy to discharge with bankruptcy, including, home loans, credit cars, and cars.
Child support debt is one of the most insidious. This debt cannot be discharged, and it is implied. You don’t sign a contract agreeing to take on the debt for some benefit. The debt is immediately incurred by knocking up a wimminz. The only thing separating you from $250-500 k in debt is a thin layer of Trojan rubber. In practice, a wimminz will usually offer assurances of taking birth control pills or something similar, but that puts the wimminz in the drivers seat. Better wear that seat belt.
Child support debt is enforced aggressively, and failure to pay can mean jail.
As far as I know, its impossible to contract with a wimminz in advance, over the terms of child custody, or child support obligations. Whether in a marriage contract or not, a wimminz will always own any children, and pwn the man’s paycheck and savings.
All this reminds me of the posting “What is a man, after all? ” where the mouse is eye-balling a piece of cheese in a trap. The mouse is smart, and comes prepared with a safety helmet. Ha
Comment by anonymous — January 1, 2012 @ 1:54 pm
I believe in the USA student debt is also “until death”….. unless you are a wimminz in which case you can get pregnant and married and pass the debt to some dumb man….
Comment by wimminz — January 1, 2012 @ 1:57 pm
Yes, in the US student loans cannot be discharged because they are Federal loans. We’ve been reading in the news that the student loan bubble may be about to pop and it is bigger than the real estate bubble. The newsmedia also tell us that more wimminz go to college than men, but they don’t tell us what their majors are, only that their future earning potential will exceed that of men because of their college degree(!!!!!). From all this, it may not be too much of a stretch to conclude that the student loan bubble in the US (another case of government screwup) is more of a skank ho problem, although quite a few men, too, are ensnared by it.
You know how useful the skank ho college majors (wimminz studies, lesbian studies, sociology, etc.) are in real life—crap. The only way those skank hos can pay back those student loans, besides hitching on a beta male, is by becoming skank ho professors themselves (which is not too difficult, given American academia’s anti-white-male attitude), teaching the same crap to younger skank hos who take student loans to attend college and “learn” the same crap. Yeah, I think there is a “higher education” bubble because government intervention has been propping up something with ZERO, if not negative, return. They are touting the increasing number of skank hos attending college as progress, while more and more industry is leaving the U.S. and the U.S. imports more and more of the stuff it doesn’t make any more.
Comment by Tim — January 1, 2012 @ 6:18 pm
It’s almost like the old “rabbits and foxes” game of life, where the wimminz and niggerz created a new ecological niche for themselves, and they grew and grew and grew instead of just being a parasite that was tolerable and lived alongside the host, they became a pandemic that consumed all the resources…
now is where it gets interesting.
Comment by wimminz — January 1, 2012 @ 6:29 pm
There are loan-forgiveness programs for graduates who work for non-profit organisations, teach in schools in disadvantaged areas, work for certain government departments etc:
http://www.finaid.org/loans/forgiveness.phtml
I imagine a lot of Women’s Studies graduates would end up in these areas. Engineers, not so much.
Comment by ThousandMileMargin — January 2, 2012 @ 1:54 am
Ah, yes. The big-daddy government can always create positions for skank ho’s (with money coming from where????). Add the state and local governments to that. I happened upon this web site the other day:
http://www.womenscareerchannel.com/
Scroll down and look at the bottom right: The IRS (federal tax agency for you outside the US) is looking “for talented professionals to make our nation stronger” and the skank ho in the picture says, “Count on me!” LMAO!
More anti-male laws will be enacted, more abuse cases will be invented, ergo more skank ho “abuse specialists” (or whatever they call them) will be needed by the federal, state, and local governments and the “employment” numbers and prospects for skank hos with junk degrees will be improved. (“wimminz,” who runs this blog, has analyzed this in great detail from the British perspective, but I don’t think the situation in the US is any better.) As ” wimminz” noted above, at some point this is going to end because there are no resources left to support this crap. Yeah, things are getting very interesting.
Comment by Tim — January 2, 2012 @ 5:31 am
Then add to these scenarios the knowledge gained from the “Money as Debt”(search on the UTub) documentary, and one really start realizing what a ponzi-scheme our current global (so called)economy actually is.
Comment by hans — January 1, 2012 @ 9:17 pm
Or listen to this part of Icke´s(yes, I know) latest interview ( http://www.youtube.com/watch?feature=player_detailpage&v=SZGJLjzE7ls#t=877s )
for a succinct explanation, and some “forecasts”.
Comment by hans — January 2, 2012 @ 3:14 pm
Icke may be a nut job, but being a not job does not preclude a man from uttering the odd profound truth, the problem is, if he does it just gets dismissed with all the lizard overlord / thetan stuff….
Comment by wimminz — January 5, 2012 @ 8:43 pm
In Australia there is a “consumer protection” law that makes it illegal to charge an interest rate above 49%. It’s aimed at pawnbrokers. The implication, of course, is that 49% is perfectly legal. I wonder how many of my compatriots realize how “protected” they are.
Comment by ThousandMileMargin — January 2, 2012 @ 1:27 am
@Gerard.
You are “supposed” to buy a house by saving up and paying cash. If everyone did this, houses would cost half what they do now as there would be no borrowed money to bid up the price.
If you find it is taking forever to save the necessary cash, then you are “suppposed” to get together with your extended family and buy a house together, cash. You’ll probably have three generation sharing a house so you can save money faster. After you buy your first house, you all keep saving and eventually you can afford to buy another, etc.
Thats how it used to be done. Of course this only works if ordinary working men can make decent wages and extended families stick together, which implies healthy marriages. Both those preconditions are getting increasingly rare.
If you find yourself in a situation where houses prices have been bid up to the point where you have to sell yourself into slavery, don’t.
Comment by ThousandMileMargin — January 2, 2012 @ 1:45 am
@wimminz @ThousandMileMargin thanks for the thoughts, now I understand why families live together in India after marriage. Food for thought…
Comment by Gerard — January 3, 2012 @ 10:43 pm