I was watching Conan Nolan on KNBC in Los Angeles less than an hour ago and UCLA economist Jerry Nickelsburg said something that I found amazing, and very troubling as well.
The UCLA economist said "When you restructure debt, that's technically a default".
View more videos at: http://nbclosangeles.com.You can find the exact comment at 3 minutes and 26 seconds. I set the embed code to that point but it does not appear to be working. However you can scroll to that spot if you like. Maybe you can, or maybe not. NBC seems to have 2 to 3 month curve before they fix problems like this. It's really sad actually.
Well, there it is, the bible of what makes banks tick, and how they are ruining the planet. "When you restructure debt, that's technically a default".
There are hundreds of millions of people who lost half of their wealth in a relatively short amount of time back in 2008. While bankers can argue that what these millions of people lost was falsely inflated wealth, these millions of people borrowed money knowing they had the assets to back up their borrowing.
Once a tremendous amount of assets were lost almost overnight, the debt people had taken on still existed.Assets were cut in half for millions upon millions of law abiding citizens, yet according to the narcissistic banking and governmental interests, the debt and the interest rate on the debt stays the same. And lets not forget it was the banks that created the false rise and real crash of wealth worldwide.
One simple banking rule, that restructuring debt is considered a default, is paralyzing the world's economy.
Ask anyone who applied for HAMP if they were not first required to default before they could even apply for a Home Affordable Mortgage Payment.In 2008 and 2009 Chase Bank changed terms on a few million of their own credit card customers who had life of the loan low interest rate agreements, yet Chase Bank denied it had defaulted.
Chase Bank's Change in Terms robbed their customers of BILLIONS OF DOLLARS in SAVINGS by forcing the customers to pay off their Chase Bank low interest rate card before their higher interest rate cards.
Somebody needs to step in and slap the bankers and change the rules. Bankers and the government use the term default to destroy people's credit ratings and force them into higher interest rate loans if they simply (edit note, Jan 28, 2013, "simply" was a poor word choice. I should have linked it to a "dire circumstance", there are certain situations in which a dire circumstance, perhaps not even of the person's choosing, could cause them to ask for a change in terms.) ask for a change in terms on an existing agreement.
To use the term default ANYTIME a consumer requests a change in terms, when bankers themselves change terms all the time with no punishment, is creating a double standard that needs to change.
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