Loan Repayment Quotes
In the Meltdown of 2008, the American Auto Companies were in dire straights and faced bankruptcy with no certainty that the industry could stay alive., They were running out of money and President Obama decided to make loans, take stock and control and force modernizing on the industry. As a result, and with some Toyota mismanagement, the companies returned to profitability and paid back their government loans early and as a result the bailout had not cost the taxpayers any money. Creditors however were outraged that the lost their preferred advantage had their been a bankruptcy.
Debts accumulated by the allies in World War I was still outstanding a decade later. When it was proposed that the United States help reduce this debt, President Coolidge remarked:
This is one of the earliest expositions of the legal and economic doctrine that if a borrower is made unable to pay the interest and principle of the loan by an act beyond anyone’s control. The obligation to pay for that year is cancelled. In modern times most cultures go the other way. When the banks caused the economic Meltdown of 2008, millions of Americans could not pay their loan obligations and mortgages. They received no relief whereas in the “primitive” world of 4,000 years ago they would have relief for that year. Note the subtle difference in Hammurabi {611462} where someone had prepaid and rented land for a year and the crop fails, and this situation where there is borrowed money.
Student loan debt had rocketed to 2nd place (behind credit cards) as the largest form of consumer debt.
Although almost a century ago, the same can now be said of many of the poorer nations of the world. Mexico, however, finally addressed many of the problems that Esquivel Obregon articulated, and Mexican development has been much more extensive.
