Zero Hedge has been running with this theme for a few days: that the big problem right now is fraudulent or forged documents being used in foreclosure proceedings.
The CBS “60 Minutes” video at the end of the post is worth the 15 minutes.
One fascinating aspect (among many such) of the CBS report is the interview with Sheila Bair, head of the FDIC. She’s talking about a “program” to buy off homeowners: let the bank take your home and here’s some money for you. You’ll be homeless with, say, $20,000.
In other words, dangle $20K in front of the noses of the rubes and the idiots will take it. Then the bank gets their house with the title cleared up.
This is, of course, a favor to the bank, which would otherwise spend all kinds of time and money to “find” the right documents. Which in the end means forging them. Which is what they have been doing.
Which brings up the second – and bigger – favor to the banks. They can commit fraud with impunity. Even Sheila Bair thinks so.
Once again, why are we extending all this forgiveness to the banks, including not only trillions in bailout money but now a pass on criminal conduct? If we’re going to do that, why not just extend forgiveness to the borrowers, too? Rather than dole out money to them which isn’t enough to get them into another home – this is a half measure that is more cruel and deceitful than anything else – why not just dump the whole thing and let them stay where they are? Then, you don’t have to come up with $20K phony dollars and you don’t have a homeless family on your hands and you don’t have a useless forced “move”, and another useless house to add to the bloated inventory of unsold homes.
This is exactly the problem I have identified over and over: all “solutions” that are seriously considered by the Washington establishment will be based on political power, which resides with the banking establishment and Wall Street. They will be designed to save the lenders. And not just save them, but to make things as easy as possible for them. At the end of the day that’s what Bair’s idea amounts to. And, it just leaves another problem down the road: what happens to the homeless family when the twenty grand runs out?
I know that a jubilee seems radical, yet solutions like Bair’s seem like utter lunacy. Can the banks really believe there is any more blood to be gotten from this stone?
Somebody should face the reality of this situation before it’s too late.
Other than me, I mean.