Comments on: Should banks extend and pretend? http://blogs.reuters.com/felix-salmon/2009/08/21/should-banks-extend-and-pretend/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Terence Yap Singapore http://blogs.reuters.com/felix-salmon/2009/08/21/should-banks-extend-and-pretend/comment-page-1/#comment-5808 Fri, 21 Aug 2009 18:45:20 +0000 http://blogs.reuters.com/felix-salmon/2009/08/21/should-banks-extend-and-pretend/#comment-5808 Banks thrive on the future path of uncertain variables. Speculation rules across all the exchanges the world over. Isn’t monetary appreciation based on variables?

That banks could ever consider NOT EARNING INTEREST on loans, albeit at slower returns than anticipated, would be very suprising.

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By: aintit abitch http://blogs.reuters.com/felix-salmon/2009/08/21/should-banks-extend-and-pretend/comment-page-1/#comment-5787 Fri, 21 Aug 2009 15:58:31 +0000 http://blogs.reuters.com/felix-salmon/2009/08/21/should-banks-extend-and-pretend/#comment-5787 “There’s definitely a part of me which is sympathetic to both borrowers and lenders who manage to come to a “one more chance” agreement. There are significant costs to default and foreclosure, and such agreements mean those costs don’t have to be taken — at least not in the immediate future. When hope becomes delusion, then regulators must step in and force write-downs. But the calculations you need to do in order to tell the difference are pretty complex.”

In the first sentence, you admit a lack of courage and backbone – clearly you aren’t a candidate for the Navy Seals program, or to do more than comment on the decision making processes of others. In the last sentence, your attempt to cover for the lack of strength of character by shrouding the difficulty in making hard choices with “complexity”. In reality, making hard choices involves nothing more than the will to endure the tough consequences that ensue from those choices.

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By: Kevin Kleen http://blogs.reuters.com/felix-salmon/2009/08/21/should-banks-extend-and-pretend/comment-page-1/#comment-5784 Fri, 21 Aug 2009 15:42:18 +0000 http://blogs.reuters.com/felix-salmon/2009/08/21/should-banks-extend-and-pretend/#comment-5784 Presumably you’re talking about income property loans since very few residential loans are facing maturity issues. In such cases if the borrower is able to make the payments and wants to extend the loan, it’s almost certain the borrower can get a bankruptcy plan confirmed extending the loan at today’s low rates. So, the lender can litigate for months and spend thousands in legal fees to have the bankruptcy court extend the loan, or they can just do it and save the time and expense.

The controlling case is Till, Lee, et ux. v. SCS Credit Corp., 2004. More on the topic at this link:

http://residentialpropertyanalytics.blog spot.com/2009/06/getting-tilled-how-6425 -truck-loan-may.html

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