ST Alpha - "But you did say or insinuate that the drop in value causes forclosures, to the point that the bank initiates it" (Reading a Post)

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But you did say or insinuate that the drop in value causes forclosures, to the point that the bank initiates it

Posted by oblique (aka kkuphal) Feb 20 '09, 14:01

and it's not. It's the borrower stopping payments that causes a problem. And the value of the home has no effect on the buyers *ability* to make payments. It may change their motivation but that's something entirely different.

Responses:

[deleted] 4
- Making payments is purely a cash flow issue. The value of your assets is a balance sheet issue. They're not the same. - pmb Feb 20, 14:12 2
  - [deleted] 1
    - Seriously Jack, you're all over the place on this. - pmb Feb 20, 14:19
- so? -- nm - oblique Feb 20, 14:09

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But you did say or insinuate that the drop in value causes forclosures, to the point that the bank initiates it

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