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IPFS News Link • Housing

The Big Lie on Foreclosure-Gate

Yesterday morning, I had The Misinformation Hour on TV as I got dressed for work. One of the comments that was made – “No one was wrongly thrown out of their home” — was repeated or ignored by hosts and guests alike. This is patently demonstrably false, and yet no one challenged it. The banks have gotten the Big Lie technique down to a science: State a lie so colossal that no one could believe anyone “has the impudence to distort the truth so infamously.” In practice, adding factually accurate, but irrelevant or misleading color, helps push the lie on unsusp0ecting rubes. The banks and their many supplicants have been successful in doing just that in the robosigning issue. Any discussion about property rights, due process, or criminal investigations into perjury are thwarted; instead, the focus is on deadbeat homeowners. And note that I am the guy who in Q1 2010 wrote More Foreclosures, Please . . .) The misdirection is successful, and the average reader/viewer/listener has no idea how badly they are being misinformed. Beyond property rights and due process, the issue of this legal impossibility of being wrongly foreclosed upon (absent fraud), are the bailouts. Saving broken business models managed incompetently by bad management is a recipe for more errors and angst. Fraudclosure is a perfect example of this. When you save broken companies from their own incompetence, this is what you get. We have no record of how many people have been erroneously foreclosed — the banks themselves are the only centralized source of that data, and they ain’t talking — but we have lots of anecdotal evidence. The plural of anecdote is not data; what is needed is a central collection of all the anecdotal errors of false or erroneous foreclosure — someone with a national office, say a US Attorney’s or Congressman’s office. I will tag a few people today . . . but to get them started, here is what I have assembled from the media: