NY Times: Still No Justice for Mortgage Abuses

Editor’s Note: The only thing I differ upon is that if the mortgages are finally recognized as unperfected liens based upon invalid notes for which the payee provided no funding, then the debt is not forgiven, it is paid in many cases by insurance, credit default swaps and Federal bailouts.

Wiping out the debt for the payment that was actually received by the true creditor or its agents would result in a benefit to the homeowners that would leave them with a tax liability instead of a mortgage. The tax liability would be lower than the mortgage even under the best of modification proposals. It would help homeowners, help state and local governments and of course have a huge impact on the Federal deficit — thus triggering a jump start to robust economic recovery.

The corresponding loss of revenue and losses caused by the claw back of ill-gotten gains from the bank will have very little effect since they are using off-shore tax havens to shield the money they took from investors and paying zero taxes.

But I guess this makes too much sense for any  government policy to follow.

SEE NY TIMES EDITORIAL

Tags: justice for mortgage abuses, NY Times editorial
Posted in bubble, Corruption, Eviction, securities fraud |