[lbo-talk] Obama defends Republic workers

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Mon Dec 8 13:45:59 PST 2008



> So the banks 'forgive' the debt, but the gov't doesn't?

We're back to conservation of matter and energy: you can't have both. The way to look at it is that the bank "pays" you to then immediately make-good on the loan. It's not a gift, of course; so you pay tax on it as income.

/jordan



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