Meet the Elite (Who could care less about you)

[n2doc]

The Foreclosure Fiasco and Wall Street’s Shrug


By Max Abelson
October 12, 2010 | 7:17 p.m

"The first thing that needs to happen, I think, is to get these people out of their homes," a man wearing a bespoke blue-striped shirt, a Hermés tie patterned with elephants and Ferragamo loafers said recently. "Correct! I'll explain," the veteran member of a bank restructuring and advisory team said.

Amid evidence of sham documents and widespread paperwork gaffes, if not systemic fraud that increasingly looks like it may be terrifically deep, Bank of America recently halted all foreclosure proceedings around the country. That followed similar announcements from the home-loan giants JPMorgan Chase and GMAC.

But Wall Street does not sympathize. "You had people putting zero down to get massive houses they couldn't afford to be in," he said Monday morning, "but now they want to stay. And the government wants to let them stay, because they're voters." A few hours later, the Goldman Sachs arm Litton Loan Servicing said it had suspended certain foreclosure proceedings, too. "Talk about a financial scandal," a Wall Street Journal editorial this weekend joked. "A consumer borrows money to buy a house, doesn't make the mortgage payments and then loses the house in foreclosure—only to learn that the wrong guy at the bank signed the foreclosure paperwork. Can you imagine?"

"The problem is they don't deserve to be in that place. They probably deserve to be there less than they used to," the source continued, referring to incomes lower now than they'd been when the loans were made in the first place. "You do need to foreclose, and you need to go back to people living in houses that are consistent with their income levels."

more

http://www.observer.com/2010/wall-street/foreclosure-fiasco-and-wall-streets-shrug

Guillotine is too quick a death for these folks....

[Catherina]

1. I agree with your last sentence. You pull and I'll push. n/t

[RaleighNCDUer]

2. You conned them into taking the loan - want to talk about who

deserves what?

[closeupready]

3. I'm sorry, but I feel that they are all so full of shit. And I mean that in a good way.

:sarcasm:

[rfranklin]

4. They would be the first ones to run witht he money if...

a contract obligating them to repay a debt was shown to be faulty.

[Hannah Bell]

5. the ruling class doesn't deserve to be in *their* place.

[county worker]

6. Well we truly live in a bizarro world.

It is true that people need to take responsibility for their actions. I have been thinking about this for a long time concerning the housing bubble. I bought a house just before things started to change concerning the requirements for borrowing.
I was really scrutinized but I hear that during the hight of the bubble there were what was called liar loans. People could say they had income that they didn't. I doubt they really did that. I think that, not unlike the paper work mess now, there was fraud by the lenders. They more than likely filled out he paperwork so that the loans were made with no checking of income.

Seeing how so many people are willing to believe what the right says, I can see how they also were not smart enough to know they shouldn't have signed up for the loans in the first place.

[Greyhound]

7. K&R for another "nobody could've predicted" event.