Zera's Blog

A Citizen's View from Main Street

Homeowners Get The Boot For Bad Paperwork While Banks Get Millions For Same

Foreclosure signThree years ago I wanted limits placed on how much the ARMs could reset in a year, in an effort to slow the foreclosures and collapse of real estate prices. I wanted the courts to sort the schemers from the dupes for the same reason.

Republicans would have none of it. They cried sanctity of contract, though these were fraudulently made and deserving of review by the courts. Contracts were sacred (except union contracts) regardless of the harm to the economy. And harm there was.

The financial sector has so badly botched mortgages that sorting it out through due process would take so long that it would freeze the market to the point of another recession. And yet, the banks have earned the losses they are trying so hard to pass on the their victims. Nor can main street absorb any more fiscal abuse if the economy is to recover.

The financial sector has become it’s own worst enemy, and no friend to the economy. They created this recession, and they are not done screwing up. They cannot prove ownership of mortgages or the right to foreclose in untold instances.

Prudent risk and due diligence have given way to unrepentant avarice. Have we reached the time for moral hazard?

They deserve to fail, but they are not the only ones who would pay for their failure.
Read the Article at HuffingtonPost

November 1, 2010 - Posted by | Capitalism, Economics, Regulation | , , , , , , , , ,

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