The Black Financial and Fraud Report: Agency Says No to Mortgage Relief

By William K. Black

The latest installment:

Via therealnews.com

4 responses to “The Black Financial and Fraud Report: Agency Says No to Mortgage Relief

  1. Maybe I’m just an ignorant Texas quasi-libtard, with some measures of conservatard thrown in, but it seems to me that if people can stay in their houses and not have their lives ruined, all of us are better off. But, then, we all know that people stop making their mortgage payments just for the fun of it, they really do have the money to make them, they really didn’t lose their outsourced jobs and or could easily find another good paying job, their lives aren’t really ruined and it’s all just a horrible trick on our wonderful lending industry.

    The MSN article stated that these pillars of society were very concerned about the “moral risk” it would create if some homeowners were bailed out, that it might create an explosion of homeowners who would basically stop paying their mortgage payments, essentially because they are, apparently, morally inferior to the Olympian (as in Mount Olympus) gods and goddesses of the lending industries. Of course, we all know that our lending industry is a shining example of moral righteousness, beyond criticism and reproach, and would never accept a bailout (Can you imagine such a morally reprehensible thing?!)! And, even if they did accept a bail out, they’d straighten right up and never make another mistake or commit fraud again! Can I have an “Amen”! Maybe I’ll go back and counter my first comment on MSN about the continuing utter sociopathic moral depravity of our lending industry. I’d hate for anyone to get the wrong idea from something I said.

  2. The MSN article stated that these pillars of society were very concerned about the “moral risk” it would create if some homeowners were bailed out, that it might create an explosion of homeowners who would basically stop paying their mortgage payments, Pray Hard

    If “loans create deposits” (and they do) then the banks are counterfeiters. So yes, every homeowner SHOULD be bailed out even if they are NOT underwater. But credit creation cheats non-debtors too (via negative real interest rates) so they deserve restitution too. That’s why Steve Keen’s “A Modern Debt Jubilee” is a more appropiate solution than principal reduction.

  3. Hey my Post-Keynesian cousins, would love to see your thoughts on this post: http://neweconomicsynthesis.wordpress.com/2012/08/05/thinkning-the-unthinkable-a-proposal-for-demand-management-58-2/

    I am hoping this could bridge the gap between some divergent schools of thought.