At this point it is all laughable. However this sort of move is no surprise at all to any of us. Those who have been promising the tsunami year after year after year simply did not account for the sheer magnitude of the force they were dealing with. Quite frankly housing is initimately entwined with the fabric of our entire economy. This time around securitization was woven into the mix to only further entangle the nations financial resources, pensions, savings, you name it.
The moratorium does have merit based on posts that sdr made in the previous thread. The default process does need to be followed carefully and there really is no excuse for it not to be. Quite frankly, the servicing organizations that go through the default process are/were woefully understaffed. For many reasons these organizations didn’t handle the processing correctly. Given the sheer numbers involved it is reasonable to estimate costs into the 10s or hundreds of millions of dollars to create the PROPER infrastructure needed to do the job correctly and efficiently. It is also reasonable to assume these organizations were in no great rush nor was there any incentive by the govt to have them rush and do it right.
Once again, all of the events leading up to this may seem well orchestrated, but in reality are consequences of greed, cutting costs, and pretty much nobody really caring. It is basically a win win for deadbeats, banks, and the govt.
The only real losers are hard working people who pay their mortgage in a timely manner and those who are looking to buy a home.
