Imagine

If we’d done this here:

Ecuador’s legislature has passed a bill that would require banks to forgive any outstanding debt on mortgages for first-time home buyers
of properties worth up to $146,000 if they default and forfeit the home.

The measure, aimed at discouraging a real estate bubble of the type that has caused so much pain in the United States and Europe, won praise from many Ecuadoreans on Wednesday.

[…] Approved Tuesday evening by a 68-21 vote, the bill also covers loans by banks to first-time purchasers of automobiles that cost up to $29,200.

[…] The law appears to be unique.

San Diego State University economist Michael Lea, a real estate specialist, said the only similar measure he was aware of was the creation of a national housing bank by the leftist Sandinista movement in Nicaragua after it won power in 1979.

[…]Pablo Davalos, an economist at Catholic University, said the move would be good for most Ecuadoreans.

“This law is positive for the consumer and negative for the banker, who now has to increase his reserves and that means less liquidity and
less profit for the bankers,” Davalos said.

3 thoughts on “Imagine

  1. A Capitalist (1%) was overheard muttering under his/her breath, “You can’t trust these damned Socialists to work within the confines of the free enterprise system. They’re always trying to do the right thing for the 99% instead of bringing every last dishonest dollar to the bottom line in profit. Rat bastards.” Come to think of it maybe it was Mean Mr. Mustard who said that?

  2. I spent three weeks in Ecuador at the end of last year, and I was very impressed by their progressive values: health care for all, recycling containers everywhere, nobody smokes (except for a few Euro-tourists), great public transportation.
    A few years ago they broke up all the multi-thousand-acre haciendas and gave the land back to indigenous people. Most of the large colonial hacienda homes have been converted into B&B’s or small hotels. Their stewardship of the Galapagos Islands is a benchmark for the rest of the world in habitat preservation.
    I might just retire in Cuenca some day.

  3. Couldn’t happen here. The politicians are bought and paid for here. And that’s the Democrats as well as the Republicans.

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