- Nov 20, 2005
- Professional Status
- Certified Residential Appraiser
There was an article in the Washington Post recently stating the small local banks are thriving right now. People are fleeing to the safety of these strong local banks who conducted business in the correct fashion. The management of these banks state their deposits have grown so much that they are looking forward to making local residential loans in order to put that deposit money to work. I say let all these greedy national overgrown banks fail, they deserve it by the way they conducted business the past decade or so. Good ridance, let these "monoplies" fail, the economy would end up better off with thousands of small local banks competing against each other. These national overgrown banks can exit stage left and take their favorite AMCs with them, yes the crash might hurt for awhile but the economy would end up being better off in the long run.
I can see if the government actually can carry out individual loan modifications on principle balance and interest rate where the HO can make the new payment, it should be a boon to other home owners that are making their payments to default. Debt relief is instant cash flow positive.