03 September 2011
Obama Pinata Politics Takes Whack At Real Estate
I fully believe the lawsuit against the big banks is a ruse. Later, when the feds begin 'negotiations' they'll ask for the toxic deeds (remember TARP?) instead of cash. The banks will be ready to turn over the paper because it helps them remain compliant to the federal stress tests for banks (backing loans with good liquid assets.) The federal government sweeps up all that subprime property (it helped create mind you) into HUD, socializing a huge segment of what was private property. Minorities, low-income & banks win. People who worked their whole life to pay for a house suddenly find it's worth much less due to a flood of less-responsible individuals in the area and fewer buyers willing to settle for more than what the government will allot.
It's the same approach as the healthcare puncture. Blast a hole in the private sector & collect the pieces through mandates and practices, used to give favors to voters who want it to continue.