We are witnessing the slow painful breakdown of the largest Ponzi scheme in the history of the world.
So many people still don’t get that BANKS do not own most of these loans, they are SERVICERS.
They make more money by dragging out foreclosure due to contractual agreements.
I completely agree with the outrage but what nobody seems to understand is that if foreclosures
were all completed ASAP and homes were put on the market and listed at current market prices, it would push prices down further leading to even more underwater borrowers which would lead to more people walking away leading to even more distress sales.
There are not enough QUALIFIED buyers to buy these homes at current levels. At lower prices houses will get sold.
It’s a vicious cycle that if allowed to happen would cause the economy to collapse.
It’s a Catch-22 for the govt. They are counting on more people to be stupid & worried about their credit scores and having an emotional attachment to a house rather than being financially intelligent.
There are govt idiots making decisions but even they are aware of what the consequences are.
The money simply does not exist to buy all these homes. The derivitives market has been built on a shaky house of cards, based on risky loans.
