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Thread: The People's Bailout

  1. #1
    Coachella Junkie
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    Default The People's Bailout

    Now OWS is launching the ROLLING JUBILEE, a program that has been in development for months. OWS is going to start buying distressed debt (medical bills, student loans, etc.) in order to forgive it. As a test run, we spent $500, which bought $14,000 of distressed debt. We then ERASED THAT DEBT. (If you’re a debt broker, once you own someone’s debt you can do whatever you want with it — traditionally, you hound debtors to their grave trying to collect. We’re playing a different game. A MORE AWESOME GAME.)

    This is a simple, powerful way to help folks in need — to free them from heavy debt loads so they can focus on being productive, happy and healthy. As you can see from our test run, the return on investment approaches 30:1. That’s a crazy bargain!

    Now, after many consultations with attorneys, the IRS, and our moles in the debt-brokerage world, we are ready to take the Rolling Jubilee program LIVE and NATIONWIDE, buying debt in communities that have been struggling during the recession.

    We’re kicking things off with a show called THE PEOPLE’S BAILOUT at Le Poisson Rouge on Thursday, November 15. It will also stream online, like a good ol’-fashioned telethon!


    http://wilwheaton.tumblr.com/post/35...eoples-bailout

  2. #2
    zeezus amyzzz's Avatar
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    Default Re: The People's Bailout

    That sounds awesome.
    Quote Originally Posted by guedita View Post
    Because fucking millenials that's what

  3. #3
    Stage Manager captncrzy's Avatar
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    Default Re: The People's Bailout

    Someone notify Patrick immediately.
    Odi profanum vulgus et arceo. I hate the unholy rabble and keep them away - Horace.
    Quote Originally Posted by Drinkey McDrinkerstein View Post
    Arcade FIre are a bunch of dicks, Deadmau5 is a dick, bands are dicks, David Bowie sucks dicks, Daft Punk is two human buttholes with semen for brains (that was loaded into a butthole from a dick that grew out of their moms), we're all dicks that fucked our moms assholes, God is going to put a giant dick down and fuck our mouths

  4. #4
    VigoTheCarpathian
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    Default Re: The People's Bailout

    FUCKING AWESOME!

    of course this does reinforce the popular idea that OWS speaks to a marginal community of poor hipster trash

    not to be the curmudgeons

  5. #5
    Coachella Junkie schoolofruckus's Avatar
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    Default Re: The People's Bailout

    Can I get a crying Playa Del Wes video for this?
    Quote Originally Posted by guedita View Post
    The childless 20-something year olds on the board who find a 50 something year old man fucking teenage prostitutes distasteful will probably change the hum of their tune once they produce babies, definitely. That's the missing link.

  6. #6
    Coachella Junkie PlayaDelWes's Avatar
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    Default Re: The People's Bailout

    Sounds to me like an evil corporate conspiracy to get OWS to pay lenders and investors pennies on the dollar for bad debt that otherwise would have been a complete write-off.

  7. #7
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    Default Re: The People's Bailout

    I believe the purpose is to write the debt off so it doesn't continue to affect credit ratings.

  8. #8

    Default Re: The People's Bailout

    I don't know much about finance but why couldn't the debtors buy their own debt for pennies on the dollar and then forgive themselves? Is everything packaged in strange and mysterious ways so IDing your own debt would be difficult?

  9. #9
    Coachella Junkie PlayaDelWes's Avatar
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    Default Re: The People's Bailout

    Quote Originally Posted by PotVsKtl View Post
    I believe the purpose is to write the debt off so it doesn't continue to affect credit ratings.
    That would be a valid point if this effort was to buy out debt that was current or non-performing but not charged off yet. But at the discounts they are suggesting, that doesn’t seem to be the case. ($25 abolishes an estimated $500 worth of debt…)

    But if an investor is willing to depart at 5% UPB, they would have already charged it off. Charged off and written off are closed status indicators, meaning the account is no longer an active entry in your credit report. The damage has already been done.

    All this would sound more viable if they were buying out bad debt closer to 30-70% of NPV, but that would be pretty expensive.

  10. #10
    Coachella Junkie PlayaDelWes's Avatar
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    Default Re: The People's Bailout

    Oh, also, doesn't the IRS count debt written off or settled as taxable income? Form 1099-C? I guess if The People's Bailout bought out the debt before the creditor charged it off, they would consider it a ‘gift’. But that goes back to my point above, investors aren't selling debt so cheaply without already charging it off first.

  11. #11
    Peaceful Oasis TomAz's Avatar
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    Default Re: The People's Bailout

    Quote Originally Posted by PlayaDelWes View Post
    That would be a valid point if this effort was to buy out debt that was current or non-performing but not charged off yet. But at the discounts they are suggesting, that doesn’t seem to be the case. ($25 abolishes an estimated $500 worth of debt…)

    But if an investor is willing to depart at 5% UPB, they would have already charged it off. Charged off and written off are closed status indicators, meaning the account is no longer an active entry in your credit report. The damage has already been done.
    I agree, this will have minimal impact on credit scores. But at least it will help with the debt burden for that unemployed anthropology major.
    Quote Originally Posted by efrain44 View Post
    Anyone know who the guy in the Cardinals jersey is? I've seen him in pictures on the board and I thought I saw him this year.

  12. #12
    Coachella Junkie
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    Default Re: The People's Bailout

    Oh well. Jeff Mangum.

  13. #13
    Coachella Junkie SoulDischarge's Avatar
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    Default Re: The People's Bailout

    Quote Originally Posted by captncrzy View Post
    Someone notify Patrick immediately.
    5% of my student loan debt would be $8100.
    Quote Originally Posted by guedita View Post
    Thanks for giving us the opportunity to not give a fuck again.

  14. #14
    Member HowToDisappear's Avatar
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    Default Re: The People's Bailout

    Oh my god. That is both horrifying and heartbreaking.
    Quote Originally Posted by PotVsKtl View Post
    See that guy in the background talking loudly about crab cakes? That's you.

  15. #15
    Member Grandma's Avatar
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    Default Re: The People's Bailout


  16. #16
    Coachella Junkie jackstraw94086's Avatar
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    Default Re: The People's Bailout

    Quote Originally Posted by PlayaDelWes View Post
    That would be a valid point if this effort was to buy out debt that was current or non-performing but not charged off yet. But at the discounts they are suggesting, that doesn’t seem to be the case. ($25 abolishes an estimated $500 worth of debt…)

    But if an investor is willing to depart at 5% UPB, they would have already charged it off. Charged off and written off are closed status indicators, meaning the account is no longer an active entry in your credit report. The damage has already been done.

    All this would sound more viable if they were buying out bad debt closer to 30-70% of NPV, but that would be pretty expensive.
    Wes, just to help clarify, are you suggesting that these are loans that are probably already defaulted? If so then to your first point, where would this money be going and how might it benefit anyone but the bank? I'm assuming OWS (at least those who set up this program) is smarter than to simply hand banks free cash.

  17. #17
    Coachella Junkie PlayaDelWes's Avatar
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    Default Re: The People's Bailout

    I am suggesting they are already defaulted and that there is no collateral of value because why else would any investor part with the debt for five cents on the dollar?'

    I'm not sure I understand your second question. Reading through The People's Bailout links, it seems that they are doing exactly what you suggest, writing checks to investors (banks, investors, and other creditors) in exchange for the transfer of debt. This whole idea would make sense to me if they were going after debt that was on the verge of being noncollectable and not yet charged off, but if that were the case, they would be paying a lot more than they claim.

  18. #18
    The Encyclopedia bmack86's Avatar
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    Default Re: The People's Bailout

    Quote Originally Posted by SoulDischarge View Post
    5% of my student loan debt would be $8100.
    Samesies! We're debt buddies!
    Quote Originally Posted by canexplain View Post
    Remember Hitler? I don't but here we are again .. cr****

  19. #19
    Wheelchair Epidemic hawkingvsreeve's Avatar
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    Default Re: The People's Bailout

    So I dont really understand.

    Lets say that 14000 debt was mine. OWS pays 500 to the people who are trying to collect my debt, and then just say it doesn't exist anymore? How are the people that I owe 14 grand to ok with this?



    In a related story, I could actually use about 14 grand exactly for something medical related. Perhaps I should just charge that shit and let OWS pick up the tab.
    Quote Originally Posted by obzen View Post
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  20. #20
    Endearingly Dislikable RotationSlimWang's Avatar
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    Default Re: The People's Bailout

    People buy up debt at a fraction of the "true" value because the people you actually owe those 14,000 to have by this point had no luck getting any money out of you so they'd rather have 500 than nothing.
    Quote Originally Posted by amyzzz View Post
    Hannah, I don't know that pigs have big weiners, and my early 20's facination with dogs because of weiner size, I think. If that helps.

  21. #21
    VigoTheCarpathian
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    Default Re: The People's Bailout

    Quote Originally Posted by hawkingvsreeve View Post
    So I dont really understand.

    Lets say that 14000 debt was mine. OWS pays 500 to the people who are trying to collect my debt, and then just say it doesn't exist anymore? How are the people that I owe 14 grand to ok with this?.
    Debt is social contract valuable as the parties involved but you think Mozart is deduced from cosmic dust
    Last edited by VigoTheCarpathian; 11-10-2012 at 12:05 AM.

  22. #22
    Endearingly Dislikable RotationSlimWang's Avatar
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    Default Re: The People's Bailout

    ... yup, what he said.

    VIGO GO TO BED. YOU NEED TO SLEEP. YOU HAVE BEEN UP TOO MANY DAYS.
    Quote Originally Posted by amyzzz View Post
    Hannah, I don't know that pigs have big weiners, and my early 20's facination with dogs because of weiner size, I think. If that helps.

  23. #23
    Coachella Junkie Mugwog's Avatar
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    Default Re: The People's Bailout

    It seems like winter time is Vigos insanity time. I remember a breakdown around this time last year. Just rub a few out already and call it a night.

  24. #24
    VigoTheCarpathian
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    Default Re: The People's Bailout

    Yeah. Good night dude

  25. #25
    Wheelchair Epidemic hawkingvsreeve's Avatar
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    Default Re: The People's Bailout

    New question:

    At what point do the original holders of the debt determine they would rather just have the 500?
    Quote Originally Posted by obzen View Post
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  26. #26
    Coachella Junkie jackstraw94086's Avatar
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    Default Re: The People's Bailout

    As far as anyone here can tell based on the details available, the original debt holder is probably out of the picture before this OWS money ever shows up. He's already defaulted and a very late 5% payment of principle isn't erasing anything. OWS would have been better off helping the dude make a few payments beforehand

  27. #27
    Coachella Junkie sonofhal's Avatar
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    Default Re: The People's Bailout

    From my understanding, debt collectors can buy the rights to chase the debt for $25. It's probably (as Wes says) already written off by whoever it is owed to. The $25 is so OWS can buy it and write it off rather than have people plagued by debt collecting parasites who will hound them into their grave.
    Quote Originally Posted by JustSteve View Post
    well, for all intensive porpoises it is, will sell out within seconds tomorrow.
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  28. #28
    Coachella Junkie SoulDischarge's Avatar
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    Default Re: The People's Bailout

    I plan on switching graves every three months for eternity so they can't lock me down.
    Quote Originally Posted by guedita View Post
    Thanks for giving us the opportunity to not give a fuck again.

  29. #29
    Coachella Junkie jackstraw94086's Avatar
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    Default Re: The People's Bailout

    Quote Originally Posted by sonofhal View Post
    From my understanding, debt collectors can buy the rights to chase the debt for $25. It's probably (as Wes says) already written off by whoever it is owed to. The $25 is so OWS can buy it and write it off rather than have people plagued by debt collecting parasites who will hound them into their grave.
    That doesn't sound right. You're suggesting that the original debt holders are simultaneously writing off (and enjoying the tax implications) AND selling the debt? What right do collectors have to collect cancelled debt?

  30. #30
    Peaceful Oasis TomAz's Avatar
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    Default Re: The People's Bailout

    The original lenders have assigned their rights to collection to whoever they sold it to. Written off is not the same as cancelled.
    Quote Originally Posted by efrain44 View Post
    Anyone know who the guy in the Cardinals jersey is? I've seen him in pictures on the board and I thought I saw him this year.

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