Eminent domain to fight foreclosures

[suki]

More articles about San Bernadino county using eminent domain to resolve underwater mortgage issues:

http://www.reuters.com/article/2012/...86A1EM20120711

and

http://www.bloomberg.com/news/2012-0...mortgages.html

I'm not exactly comfortable with the use of eminent domain in this way, but I do feel that the underwater mortgage issue won't be resolved quickly unless forced to. I'm curious as to how the iTulip community feels about this.

[BadJuju]

Re: Eminent domain to fight foreclosures

Like anything, there is a lot of blame to go around, but honestly, I want to see it stuck to the FIRE industry. They were extremely predatory and they leveraged the entire system against people. Let's put people before corporations for once.

[erising]

Re: Eminent domain to fight foreclosures

Like anything, there is a lot of blame to go around, but honestly, I want to see it stuck to the FIRE industry. They were extremely predatory and they leveraged the entire system against people. Let's put people before corporations for once.

it won't all get 'stuck' to the FIRE industry. I have a friend who is a financial advisor. He uses MBS bond ladders to secure his retiree clients' cash flow streams. If the bonds become worthless, all his retiree clients who rely on that stream of interest income, not to mention the repayment of principal, will be the ones "stuck"

[BadJuju]

Re: Eminent domain to fight foreclosures

it won't all get 'stuck' to the FIRE industry. I have a friend who is a financial advisor. He uses MBS bond ladders to secure his retiree clients' cash flow streams. If the bonds become worthless, all his retiree clients who rely on that stream of interest income, not to mention the repayment of principal, will be the ones "stuck"

I hadn't really thought of that. That's not good at all, either. Thanks for the clarification. I am young and possess few assets, so I am much more able to handle something like this. It is easy to forget about all of the people that are tied down to what they have and what they expected to have. I have never really had any expectations of having anything, so the mindset is different.

[DSpencer]

Re: Eminent domain to fight foreclosures

I found Hackett's analysis very convincing, especially because he told me he spent five or six weeks researching the legality of eminent domain seizure of mortgage loans.

The media is an absolute joke. The article claims to have an editor in addition to the author yet they still can't consistently spell this person's name correctly (spelled Hockett everywhere else). Even more ridiculous: This guy's analysis is "very convincing" to the author because he tells the author he spent a few weeks researching the issue? Really? Not based not the actual arguments, but just because he claims to have spent a long time looking into it?

As to the issue at hand, it sounds like a private company is using the force of government to steal a profitable investment from other people so they can resell it themselves to make money. Is that pretty much the goal here or am I missing something?