• 6 Posts
  • 55 Comments
Joined 7 months ago
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Cake day: November 19th, 2023

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  • Waitaminit…

    If a bank sells a mortgage, there obviously has to be a buyer.

    Any buyer who does their due diligence is going to see a mortgage on a commercial office property, and weigh the risks of the borrower defaulting on their mortgage, or the borrower not being able to refinance when the mortgage is due.

    So given the current environment for commercial offices, any reasonable buyer is going to offer to buy commercial office mortgages at a discount, maybe even at a significant discount, which likely means a financial loss for the bank anyway.

    So what’s the difference if the bank holds on to the mortgage, and if the borrower defaults, then seizing the building, i.e. the real asset, and auctioning it off for whatever it can get?

    Wouldn’t the loss on a mortgage default and asset seizure, likely the be about same as the loss as selling to a prospective buyer for the mortgage, a buyer who had properly calculated a discount for the risk into their purchase price?






  • I’ve been saying this for years: The US economy is not “growing” not because we’re making more and better products, but because we’re commercializing social support systems that we used to get at low cost, or for free, from our families, relatives and neighbors: Health care, child care elder care, live-at-home spouses and homemakers, even talking with your neighbors and friends has been replaced with social media.

    The cost of birthing and raising a child is even commodified in the health care system.

    Is it any wonder why wealthy countries’ birthrates are falling? Asides from environmental factors, like microplastics and climate change.

    That’s not productivity growth and making lives better for everyone.

    It’s making the production of wealth increasingly meaningless for the average person.

    It’s mining social and middle class wealth into the pockets of the wealthy elite and non-human corporations.

    But what happens when the wealth in the mines is all gone?