[patientrenter]

[quote=EconProf]One would think the financially interested party–the bank–would really like to know about this. Let them have the facts. They have a lot at stake in minimizing their loss, so should have the incentive to act accordingly.
Of course, this assumes they are economically rational…….[/quote]

If we were in a rational market, the lenders would be very actively chasing fraud. Why are they not chasing fraud? Because the government has sent signals to all and sundry that they will pick up the tab if mortgages are not repaid. If you’re a bank, and you make $2 in fees for every $100 of fresh loans, and your losses are paid by the govt, why would you stir the wrath of your paymaster by going after frauds and deadbeats? Barney Frank and Chris Dodd would subpoena you to appear before their committees, and question why you are holding up the free flow of credit.

[patientrenter]

[quote=EconProf]One would think the financially interested party–the bank–would really like to know about this. Let them have the facts. They have a lot at stake in minimizing their loss, so should have the incentive to act accordingly.
Of course, this assumes they are economically rational…….[/quote]

If we were in a rational market, the lenders would be very actively chasing fraud. Why are they not chasing fraud? Because the government has sent signals to all and sundry that they will pick up the tab if mortgages are not repaid. If you’re a bank, and you make $2 in fees for every $100 of fresh loans, and your losses are paid by the govt, why would you stir the wrath of your paymaster by going after frauds and deadbeats? Barney Frank and Chris Dodd would subpoena you to appear before their committees, and question why you are holding up the free flow of credit.

[patientrenter]

[quote=EconProf]One would think the financially interested party–the bank–would really like to know about this. Let them have the facts. They have a lot at stake in minimizing their loss, so should have the incentive to act accordingly.
Of course, this assumes they are economically rational…….[/quote]

If we were in a rational market, the lenders would be very actively chasing fraud. Why are they not chasing fraud? Because the government has sent signals to all and sundry that they will pick up the tab if mortgages are not repaid. If you’re a bank, and you make $2 in fees for every $100 of fresh loans, and your losses are paid by the govt, why would you stir the wrath of your paymaster by going after frauds and deadbeats? Barney Frank and Chris Dodd would subpoena you to appear before their committees, and question why you are holding up the free flow of credit.

[patientrenter]

[quote=EconProf]One would think the financially interested party–the bank–would really like to know about this. Let them have the facts. They have a lot at stake in minimizing their loss, so should have the incentive to act accordingly.
Of course, this assumes they are economically rational…….[/quote]

If we were in a rational market, the lenders would be very actively chasing fraud. Why are they not chasing fraud? Because the government has sent signals to all and sundry that they will pick up the tab if mortgages are not repaid. If you’re a bank, and you make $2 in fees for every $100 of fresh loans, and your losses are paid by the govt, why would you stir the wrath of your paymaster by going after frauds and deadbeats? Barney Frank and Chris Dodd would subpoena you to appear before their committees, and question why you are holding up the free flow of credit.

[patientrenter]

SDR,

There are people who lived off the economic boom triggered by mortgage debt who we all despise, and there are people who we like, but who deserved a reminder that there is no free lunch, and then there are people who are “innocent bystanders” we feel sorry for.

I tend to think there are hundreds of millions in the first two categories, and a few hundred thousand in the third. In the NY Times Sunday, there was an article about the NYT charity helping people who bought houses they could not afford. I was outraged. The people they featured in the story were getting more help than I have ever received, even though they had spent more than I have ever spent.

So I have some room for empathy, but not a lot. Bring it on. We need to redirect economic activity away from housing and other consumption toward producing things that people in other countries want to pay us good money for.

[patientrenter]

SDR,

There are people who lived off the economic boom triggered by mortgage debt who we all despise, and there are people who we like, but who deserved a reminder that there is no free lunch, and then there are people who are “innocent bystanders” we feel sorry for.

I tend to think there are hundreds of millions in the first two categories, and a few hundred thousand in the third. In the NY Times Sunday, there was an article about the NYT charity helping people who bought houses they could not afford. I was outraged. The people they featured in the story were getting more help than I have ever received, even though they had spent more than I have ever spent.

So I have some room for empathy, but not a lot. Bring it on. We need to redirect economic activity away from housing and other consumption toward producing things that people in other countries want to pay us good money for.

[patientrenter]

SDR,

There are people who lived off the economic boom triggered by mortgage debt who we all despise, and there are people who we like, but who deserved a reminder that there is no free lunch, and then there are people who are “innocent bystanders” we feel sorry for.

I tend to think there are hundreds of millions in the first two categories, and a few hundred thousand in the third. In the NY Times Sunday, there was an article about the NYT charity helping people who bought houses they could not afford. I was outraged. The people they featured in the story were getting more help than I have ever received, even though they had spent more than I have ever spent.

So I have some room for empathy, but not a lot. Bring it on. We need to redirect economic activity away from housing and other consumption toward producing things that people in other countries want to pay us good money for.

[patientrenter]

SDR,

There are people who lived off the economic boom triggered by mortgage debt who we all despise, and there are people who we like, but who deserved a reminder that there is no free lunch, and then there are people who are “innocent bystanders” we feel sorry for.

I tend to think there are hundreds of millions in the first two categories, and a few hundred thousand in the third. In the NY Times Sunday, there was an article about the NYT charity helping people who bought houses they could not afford. I was outraged. The people they featured in the story were getting more help than I have ever received, even though they had spent more than I have ever spent.

So I have some room for empathy, but not a lot. Bring it on. We need to redirect economic activity away from housing and other consumption toward producing things that people in other countries want to pay us good money for.

[patientrenter]

SDR,

There are people who lived off the economic boom triggered by mortgage debt who we all despise, and there are people who we like, but who deserved a reminder that there is no free lunch, and then there are people who are “innocent bystanders” we feel sorry for.

I tend to think there are hundreds of millions in the first two categories, and a few hundred thousand in the third. In the NY Times Sunday, there was an article about the NYT charity helping people who bought houses they could not afford. I was outraged. The people they featured in the story were getting more help than I have ever received, even though they had spent more than I have ever spent.

So I have some room for empathy, but not a lot. Bring it on. We need to redirect economic activity away from housing and other consumption toward producing things that people in other countries want to pay us good money for.

[patientrenter]

Congrats, TG. I’ve always enjoyed your writings here. We are envious, and will have a hard time waiting for the 1999 price on our own places without your wit.

[patientrenter]

Congrats, TG. I’ve always enjoyed your writings here. We are envious, and will have a hard time waiting for the 1999 price on our own places without your wit.

[patientrenter]

Congrats, TG. I’ve always enjoyed your writings here. We are envious, and will have a hard time waiting for the 1999 price on our own places without your wit.

[patientrenter]

Congrats, TG. I’ve always enjoyed your writings here. We are envious, and will have a hard time waiting for the 1999 price on our own places without your wit.

[patientrenter]

Congrats, TG. I’ve always enjoyed your writings here. We are envious, and will have a hard time waiting for the 1999 price on our own places without your wit.

[patientrenter]

SD Realtor and Lyra,

You are spot-on. Thanks for speaking up for people who act, and acted, responsibly. We are a minority.

[Author]

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