Thursday, September 8, 2011
Our regular piece on The Morning Show with Sybil & Martin was about debt forgiveness this week, great conversation in an easy to interpret manner.
Our thoughts on Debt Forgiveness have been a source of debate and while we accept that there are cons to the idea there are also sound reasons.
The Independent looked at this topic today and mentioned Karl Deeter in the piece
In answer, let me quote Irish economist Karl Deeter, who recently said: “I think debt forgiveness is generally a terrible idea, and have only become an advocate as I watched a system evolve whereby investors have been insulated from taking loss at the expense of largely innocent bystanders [taxpayers]. In chasing the crisis down this rabbit hole we have perhaps avoided creating zombie banks, but we are creating zombie households in their wake.”
He continued: “The idea that this is a ‘punishment to the prudent’ [debt forgiveness] is a mistake. If so, then where is the ‘prudent rage’ against people receiving taxpayer-funded Mortgage Interest Supplement, which is paid to more than 18,000 households, while on the same street another person slaves to make their payments?
“Or the ‘prudent backlash’ by people who stayed out of the market entirely, against taxpayer money spent on rent supplement, which allows a person around the corner to enjoy a similar property for free?”
Filed in Accountancy, Advisors.ie In the Press, Banking, Debt, Economics, Financial Advice, Mortgages
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Also tagged advice, banking guarantee, carol hunt, financial news, karl deeter, sunday independent
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We were pleased to cover the topic of Debt Forgiveness with Angela Keegan, MD of MyHome.ie on ‘The Morning Show, with Sybil & Martin’ on TV3.
Filed in Accountancy, Advisors.ie In the Press, Debt, Financial Advice, Mortgages
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Also tagged angela keegan, debt management, debt restructure, debt write off, karl deeter, martin king, sybil mulcahy, the morning show
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When a bank holds a loan worth €200,000 it is an asset valued at that figure. Even if the security for the loan is a property that has fallen in value to €100,000.
So it is no surprise that banks will do whatever it takes in order to avoid turning their asset into a 50 per cent loss. In fact, even if the loan getting into trouble it doesn’t get written down to €100,000 -that only happens after the asset value has been realised. This is in part why we have three repossessions per 100,000 mortgages, while Britain has 65 times more, at about 200 per 100,000. At the same time, there has been huge political pressure via politicians and the Central Bank (formerly the Financial Regulator), via the thrice reworked Code of Conduct on Mortgage Arrears to ensure that we don’t allow people to get their homes repossessed as long as they engage’ with the lender.
Filed in Accountancy, Accountant, Advisors.ie In the Press, Banking, Debt, Economics, Financial Advice, Mortgages
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Also tagged distressed debt, distressed mortgage, distressed seller, imb, mortgages, problem loans, provision for bad debt, writedowns
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Wednesday’s Today with Pat Kenny (RTÉ Radio 1, weekdays) provided a more less heartening illustration of contemporary mores. The economist Jim Power and the mortgage broker Karl Deeter were in the studio to discuss AIB’s tentative debt-forgiveness proposals for distressed mortgage holders.
Filed in Accountancy, Advisors.ie In the Press, Banking, Debt, Economics, Financial Advice, Mortgages
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Also tagged acca, accountants, dublin accountancy, financial, irish mortgages, jim power, karl deeter, pat kenny, pat kenny show, provision for bad debt
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Midweek on TV3 had a segment on debt forgiveness and it featured some commentary from Karl Deeter of our company. The piece is above, the topic is provocative!
Wednesday, April 13, 2011
The enormity of the black hole facing banks and taxpayers is summed up by Economist David McWilliams today who says that “the banks will take €500 million a week out of the economy for the next two years”. It is a gloomy summary of our predicament – and a crisis that has squeezed homeowners, taxpayers and businesses. One sector has been given a glimmer of hope by AIB. The bank yesterday suggested that it might write off the debt of struggling borrowers. Debt forgiveness for those with mortgages they can’t repay. Joining Pat was Karl Deeter, Operations Manager with Irish Mortgage Brokers and Jim Power Chief Economist with Friends First.
Filed in Accountancy, Accountant, Advisors.ie In the Press, Financial Advice, Mortgages
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Also tagged debt management, debt reduction, debt writedown, jim power, karl deeter, mortgage debt forgiveness, pat kenny
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