Wed Nov 14, 2012, 05:07 PM
4 t 4 (2,407 posts)
Rolling Jubilee: How Occupy Wall Street aims to bail out the 99%
Business Insider and Financial Post Staff | Nov 14, 2012 2:39 PM ET | Last Updated: Nov 14, 2012 3:48 PM ET
ReutersOccupy Wall Street has launched a debt relief program that could gain them traction again. .
Debt resistance is just the beginning. Join us as we imagine and create a new world based on the common good, not Wall Street profits
Occupy Wall Street has been out of the headlines for a while now, but an offshoot of the group has launched a new plan that could gain them traction again.
Rolling Jubilee is a plan to use money pooled from donations to buy distressed consumer debt at marked down prices. Lenders often sell debts for pennies on the dollar to third parties who either try to collect on it or bundle it up for resale. But, instead of collecting it like a debt agency would, the group, known as Strike Debt, would forgive the debt.
The original debt holders will get a certified letter informing them they are off the hook, the New York Times reports.
Occupy Wall Street’s new-found money brings problems
Why Occupy's Plan To Cancel Consumer Debts Is Brilliant
How One Man Talked His Way Out Of $220,000 Of Debt
SORKIN: Occupy Wall Street Will Barely Be An Asterisk In The History Books
Here’s how the group describes it:
One of the organizers of the project, David Rees elaborates on his blog:
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!
That test run does sound impressive, and the idea of helping people in dire financial straits through unfortunate circumstances (for example, medical bills) is a noble one.
Rolling Jubilee, by the way, refers to the biblical tradition of a jubilee year, in which all debts are forgiven and all indentured servants are given their freedom.
Rollingjubilee.orgAccording to its website, Rolling Jubilee has already raised $162,729 through online donations, which is enough to buy $3.2-million worth of defaulted loans. .
But can it work? Alex Hern at the New Statesman points out that, while the law is on OWS’s side, the banks may not be. Hern points to Felix Salmon’s discussion of the American Homeowner Preservation, which sought to buy up distressed mortgages and find ways for the homeowners to stay in there homes and pay off their debt.
Here Salmon explains why that plan didn’t work:
” The idea might have been elegant, but it didn’t work in practice, because the banks wouldn’t play ball: They (and Freddie Mac) simply hated the idea of a homeowner being able to stay in their house after a short sale, and often asked for an affidavit from the buyer saying that the former owner would certainly be kicked out.”
Regardless of these pitfalls, OWS seems to be putting a lot of effort into the project. The plan will formally begin Thursday, Nov 15, with a fundraiser at a Greenwich Village nightclub. According to its website, the group has already raised $162,729 through online donations, which is enough to buy $3.2-million worth of defaulted loans.
And it’s earned praise from some unlikely places, such as Forbes magazine, which declared: ‘Finally, An Occupy Wall Street Idea We Can All Get Behind, The Rolling Jubilee.”
Quebec minister lashes out against plans to bring Alberta oil to province
'We could go back into recession': Obama calls for rich to pay more
'Enough is enough!' Anti-austerity strikes sweep Europe
Rolling Jubilee: How Occupy Wall Street aims to bail out the 99%
Salvation’s in the details: RIM gears up for decisive battle as new phones finally on way
Rona board must go, says major shareholder
How a vicious circle of self-interest pushed San Bernardino into bankruptcy
Constructive criticism is an oxymoron we should do away with
RIM's new BBM Voice enables voice calls over WiFi
Canadians' debt loads grew at fastest pace in two years during summer spending spree
Norton Rose makes U.S. breakthrough with Fulbright merger
TSX lower as fiscal cliff worries trump positive earnings, dividend hikes
A complete overview of the state of global markets and where they are going
Live chat today: When to take your CPP
Toronto developer puts new spin on condo craze with plan to sell to businesses
Saying 'no thanks' to Nexen deal patently unwise: Jim Prentice
Starbucks to acquire Teavana for US$620-million in expansion beyond coffee
Closing Bell: TSX tumbles to two-month low as Iamgold results and fiscal cliff worries weigh
Inside the power struggle to push Microsoft in risky new direction
California takes big step in limiting greenhouse gases
Dismissal law now favours employees
'They're not lining up anymore': Policy must respond to need for skilled immigrants
Bet on the U.S. housing rebound without going south
Five ways insurance can give you an edge
EU proposes easing Spain austerity cuts as protests rage
The most lucrative time to draw CPP
Re-elected Obama has no reason to block Keystone XL pipeline
David Radler to pay no fines in settlement with OSC
Loblaw hikes dividend as profit falls
ACE Aviation sells remaining stake in Air Canada
Fed officials see need for more bond buying
Canadian miners find welcome mat in U.S. high yield market
The mathematics of customer loyalty: A customer saved is...
Facebook stock jumps as share lockup expires
Impending wave of business-owner retirements could...
'Empty voting' clouds shareholder rights law
25 small companies with better perks than Google
Check out the new BlackBerry 10 next to Apple's iPhone 5
A petition urging Macy's to dump Donald Trump has...
Tapping what could be world's next big energy source...
Is there such a thing as too much IT?
Leon’s buys domestic rival The Brick in $700M deal
Here's how you might be able to trim your property tax bill
Startups face funding problem in Canada
Here's how the fiscal cliff is already hurting the economy
Hewlett-Packard price target cut, UBS says company 'must...
Murphy to take over some Shell oil assets in Alberta
Canada has contingency plan for...
Family Finance: Big savings, small returns
U.S. stocks best bet for dividends
RIM says BB10 devices will be in stores soon after...
FMC to link with SNR Denton and Salans to create new international law firm
Differences in Canada and Australia's approach to...
Cameco downgraded at JPMorgan, but others see opportunity
Toronto condo projects on hold as sales plunge
Is Bakken set to rival Saudi supergiant Ghawar oilfield?
8 surprising things that wealthy Chinese invest in
Check out Google Canada's new Toronto headquarters
Why wealthy investors are cutting back...
Threat of Caisse rating cut draws ire, called...
Don't do business with firms 'named and shamed' by OBSI:...
Race for B.C.'s natural gas assets heats up
REITs beat condos every time
J.K. Rowling's Book of Spells is a magical experience for kids
Will Ontario's new tax on the rich hurt the province?
Alberta’s oil riches driving Canada’s economy: BMO
Everything you need to know about Canada's housing...
Young Canadians feeling the financial pain
There are actually 9 'Cliffs' investors should be freaking...
Rona faces uncertain future as earnings decline following...
Analysts hike their Quebecor price targets following Q3 earnings
UBS advice for a euro collapse: 'tinned goods, small calibre...
Is Windows 8 disappointing Microsoft?
U.S. retail sales sag on autos, wholesale prices subdued
Gold harder than ever to find: Barrick CEO
Canada's home prices seen falling, not crashing
Topics: Business Insider, Occupy Wall Street
0 replies, 282 views