Allan and others yes I do believe that it is IN PART a logistical problem however there is no motivation by the banks to resolve the logistics. Moreover I am now more convinced then ever that the banks have simply won.
Look, I think we will all agree that at some point, (my guess is 2004 sometime) the banks all pretty much knew that they had all passed the point of no return. At that point there was a concious decision to move forward with the fairly logical conclusion that the government would bail everyone out. That is pretty much what has happened right? I mean it is not like the default rates were not already high in 2007 nor were they unpredicted.
So to me the simple plan was that they will churn out REO properties at a very slow rate. I think they also knew, and rightfully so, that there PALS Barney Frank and his henchmen would put in place legislation to slow down the process even more. In my opinion banks may hem and haw about this but in reality it plays right into the plan doesn’t it? The longer it takes to mark each individual asset to true market value the better. The more this plays out the more orchestrated it all looks to me. Wall Street and the government are dancing a perfect waltz. As long as they do it right, they get out of this mess without crippling the country. Hey if it takes 10 years then honestly it doesn’t seem like it really matters does it?
Guys like Mr Mortgage and others see the facts for what they are but they are not acknowledging the rulemakers own the game right? Didn’t Mr Mortgage have a similar prediction last year guys? I am not saying he is not dead on, I am saying that the game is rigged.
Part of me says it has to change. To many homes being held by the GSEs, to many homes held by the banks or the private entities who will pull them from the banks books (thanks mr taxpayer). Yet… the other more cynical part of me thinks that the game is damn far from over. I am starting to compare this to winning in Vegas. Instead of trying to beat the house in Vegas though, we are dealing with Barney Frank and Wall Street…
