Friday, October 8, 2010

Everything you need to know about the forclosure mess................

Where would we be without all the politicians jumping on the
band wagon to halt foreclosures?...................probably a lot
better off.

Two excellent essays- here (Paul Jackson at the Housing Wire)
and here (Richard Epstein at Forbes).

Excerpt here:

"Regardless, the inconvenient truth here is that until we allow
this billions of dollars worth of bad mortgage debt to truly
course through our economic veins, to work itself out, we
won’t see an economic recovery. Deleveraging privately —
and now, through transfer of debt, publicly — is a
necessary prerequisite to future economic growth in our

Foreclosures, then, aren’t really the enemy at our gates;
they’re instead a necessary and healthy indicator of market
correction. They are proof that our nation’s well-developed
system of private property rights is, indeed, actually
working as it should.

But our government has instead made foreclosures into a
“last stop” measure instead, something to be avoided at all
costs as well as something that probably rates just below
Big Tobacco on most American’s scale of corporate
loathing — this is a huge mistake, as NYU law professor
Richard Epstein notes in a brilliant column published in
Forbes magazine.

By giving in to sensationalism over robo-signers and who
notarized what, we’ve allowed procedural gaffes to
substitute for true substance. And we’ve forgotten why those
procedures really exist in the first place — not to protect the
hapless borrower, who has already defaulted, but to instead
protect our nation’s sacred system of land rights. To protect
the foundations of our very democracy."

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