Site for Free Markets and Free People

Tuesday, May 24, 2011

States to Ask Banks For Bigger Extortion Payment

State attorneys general said that the $5 billion settlement offer from big banks to settle problems with robo-signing flaws in the mortgage was "woefully inadequate."

Let's forget for a second that no one to my knowledge has been evicted from his home who was current on his mortgage payments, but rather there were issues related to documentation. Meanwhile, many delinquent homeowners have been living in homes rent-free for 12 to 18 months.

This slush fund will do nothing for the multi-trillion-dollar housing market. It will however, give politicians the ability to dole out privileges for a special chosen few. And it will, of course, be money that will ultimately be paid by bank customers. Unfortunately, when politicians have never worked in the private sector, they don't realize that you can't have an economic recovery while holding the banking system hostage at the same time.