1. Richard Eberle

    The banking system is unable to recycle property assets both commercial and residential due to the presence of personal guarantees given by borrowers to the banks. While this represents another layer of security (at least on paper) I would imagine in reality they contribute very little to improving loan quality in the current environment. Property prices must be marked down and recycled as quickly as possible and if the government were to ban personal guarantees on existing loans immediately it would encourage the banks to take the necessary commercial steps more expeditiously. Wishing you can get blood out of stone will not make it so. The presence of personal guarantees has done nothing to stop us getting into this mess and their presence is only delaying our ability to exit this mess.

  2. Hi Richard!

    Delighted to see you stopping by & for the comment – it makes a lot of sense actually (getting rid of personal guarantees), and it isn’t in the debate (yet – I’ll be raising this issue asap) so far and should be.

    How are things going state-side? Does the same avoidance of reality prevail or are banks getting through the trash and moving on?

    Come back soon! And if you pass this way let me know I’d love to see you in person.

  3. o This conversation is going no where. It’s lacking the place of a good leader to head the things to come out on conclusion.


    Debt Help

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