Six Flags may be in serious trouble. The company has a $300 million debt payment due this summer and has indicated it may not be able to make the payment unless it’s able to restructure it’s debt. Restructuring the debt may be troublesome since the financial markets are still in turmoil due to the recession. This could mean discounts for companies that actually have enough money to buy some of Six Flag’s parks.
The US Government is rolling the idea of a government run bad bank to alleviate all the bad debt that’s in the financial system right now. The idea is to take the bad debt off the books so the banks will be more likely to lend to you and me.
My question is:
If this happens and all these mortgages go into this program, what happens when people don’t pay? Will they just be allowed to continue living there, or will the government evict them?
Americans debt dropped for the first time ever in the 3rd quarter of 2008. Led by a decline in home values but also by consumers pull back in spending on credit cards as people readjust their spending habits due to questionable job status and the weakness of the economy.
