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News Link • Corruption

James Howard Kunstler: Full Bore to the Vanishing Point

This was the week when the US housing fiasco got even more extra-special interesting as the Bank of America suspended mortgage foreclosures in twenty-three states, and the Connecticut Attorney General (Richard Blumenthal, who is running for governor) declared a 60-day moratorium on foreclosures (a political ploy do ya think?). Also of interest, Ally Financial suspended foreclosures in twenty-three states - and note, by the way, that Ally is the mutant offspring of the bailed-out General Motors Acceptance Corporation (GMAC), which also spawned the infamous DiTech Mortgage finance company (remember those non-stop TV commercials a few years back) which specialized in jumbo NINJA loans (No Income No Job or Assets). A conspiracy theorist would be in nirvana with all this, but it was just plain vanilla fraud in a time when fraud was over-taking apple pie and Mom as the defining quality of our national character. The net effect of all this is that the real estate industry in America just got a whole lot more desperate on Friday. What's with suspending all these foreclosures? Generally it's about the slovenly (and possibly felonious) paperwork associated with so many home loans doled out in the recent bubble years, above and beyond, you understand, the complete absence of due diligence in evaluating borrowers - but that aspect has been so well known for so long, and so blatantly ignored by the legal authorities that it has merely entered the realm of humorous American folklore like Br'er Rabbit and the Chickens - too quaint to prosecute.

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