What’s that you say? CNBC was shilling for the banks? Say it ain’t so. Here’s a snippet from the Fourteenth Banker, full article here:
“CNBC has this article up this morning decrying the politics of foreclosure. Yes, it is political. But look at the nonsense of his argument.
Yes, the process is flawed because the banks clearly aren’t equipped to handle the numbers.
Yes, there may be some loans that could have been saved, but the vast majority can’t.
Still lawmakers want to freeze all foreclosures to make sure all of them are fair because, as Speaker Pelosi writes, “People in our districts are hurting.”
The question is, how much would a foreclosure freeze hurt the greater housing market?
What do these questions have to do with it? Either there is a legal process and the banks spend the money to follow it, or they bear the consequences. That is free market capitalism. So far, no one has proposed a new law or regulation. They are just asking the banks to follow the laws that were in place when these mortgages were originated and sliced and diced into securitized assets. If it now costs more to process the risks that were in those portfolios, the folks that made the bets should pay the costs. Simple and elegant.”
Yea, logic! Yea, rule of law! It will never work. My mother told me that sarcasm is not becoming but I didn’t care.