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IPFS News Link • Housing

Foreclosure-Gate: Banks and Bloggers Applaud Death of "The Rule of Law"

Well yes, I am angry. But everyone, by this point, should be angry. Very angry. There are several reasons for this: The rule of law matters. If we lose that we lose our society. All of it. The gang-banger on the street lives in a world where the law doesn't matter to him (until he gets caught, of course.) Do you like that image of a world to live in, and are you willing to have that as your way of life? Me neither. Yet there is little difference between stealing with a briefcase and a pistol from the perspective of the person who gets ripped off. Both, assuming you don't actually shoot someone, are stealing, both take someone's hard-earned wealth, and both impoverish people for your ill-gotten gains. There are real people - millions of them - who got rooked by these actions. It is not just about whether you were paying your house payment before you got foreclosed on. It is also about whether the investors or the homeowner were screwed out of thousands per foreclosure in bogus fees such as force-placed insurance, multiple "inspections" that were unnecessary (and perhaps not even really performed), whether ordinary and reasonable costs were marked up by ridiculous percentages simply for additional "profit" (which came from the homeowner's hide or the investors) and more. Finally, investors got rooked too, which is not just some faceless corporation - by and large these are pension funds, annuity companies (insurance firms) and individuals who bought paper believing that the prospectus and the representations in it were factual. All of the above and more were crooked acts and promising not to do them again doesn't compensate the millions of individuals who got screwed. There is no reason to believe that prosecution and enforcement will be any more effective - or even present - this time than it was before. Most of these acts were violations of the law of one sort or another. Consumer protection statutes and the basic covenant of fair dealing already provide sufficient legal sanction - if they're used. Likewise, perjury is a crime in most jurisdictions and it appears that the legal definition of perjury did, in many of these cases, occur. If these events and offenses will not be punished when the facts have been developed and in some cases admissions made, there is no reason to believe the Attorneys General will do so in the future. We can't, as a society, "just get over it." The mathematics won't allow it, irrespective of willingness to "forgive and move onward." This, fundamentally, is the big problem that irrespective of desire constrains any actual constructive outcome. No matter what sort of excuses are made by those within the Beltway and in ivory tower institutions like Harvard, which Levitin infests, the fact remains that Algebra I is going to win this war if we try to walk that path. The Beltway will burn and the Ivory Towers will be turned into toothpicks. None of us benefit from that in society as a whole and we must not allow it to happen because down that road lies certain destruction.