This interesting post from Ixelles
made me realise that we don't really have a dedicated thread to discus the motives of the good people at New Beginnings/New Beggings. So what is their game exactly? How do they expect to benefit from their campaign?
We can broadly identify two types of motive: selfless motives, and selfish motives.
1. Selfless motives
: they are running their campaign for some ideological, social or religious reason. The first seems unlikely. The second is possible, and the third only occurred to me when I heard Laura White give the big man so much credit (no pun etc.) for her debt relief - does anyone know if the people involved are particularly Christian or something?
2. Selfish motives
: Ixelles suggests that perhaps they see an opportunity for a lot of work in the coming years -
Is the angle for New Beginnings that they will now be inundated with phone calls looking for their free service and they'll get some kind of state-sponsored role to help mortgage-holders in distress, making them a kind of MABS-esque mortgage specialist (paid for by the state). They can't just offer free legal services indefinitely.
This sounds plausible. Another motive I'd like to throw into the pot is that - if I'm not mistaken - legal types cannot practice if they are bankrupted, so if you are in the legal business and you have borrowed heavily for property investments you are at risk of losing not only all of your assets but your job too. And I can't help thinking that there are plenty in the legal profession who did just that
. So convincing the public (and more importantly, the government) that debt forgiveness/sharing is the 'only game in town', they can handily sidestep losing their careers and possibly hold onto some assets too. Note that they need not be doing this on their own account - I'm sure they could be acting on behalf of legal colleagues. If I were behind this, I certainly wouldn't risk discrediting the campaign by being exposed as a massive debtor myself.
Just got around to listening to the Newstalk interview with Laura White. Eddie Hobbs, who is involved with NB, refers to 'people like me and New Beginnings and MABS and FLAC' as being on the same side in the argument on mortgage restructuring (taking on the 'high priests of moral hazard', as Eddie puts it).
This just makes me even more inclined to wonder whether they are angling to be a part of the newly beefed-up MABS.