"Why not just go old school with “let them eat cake”?" LOL
Since our government relieved the banks of toxic loans, and nearly 100% of all new loans are underwritten by Freddie and Fannie, as I understand it, then the banks aren't on the hook for the loans they're servicing. Most likely, the owner of the note is Freddie or Fannie, or some other entity.
These obligations have already been discounted by the markets.
As QE winds down, and the economy resets, foreclosure rates can be expected to increase in a big way. If QE3 is enacted, then the end of the dollar is near. There is no clear way out of this mess without stabilizing the economy, which begins with addressing wealth and income disparity and corporate tax reform. Status quo is unsustainable, and we ignore the causes of the instability at our own peril.
Naked Capitalism: Jamie Dimon Says Banks Are Being Nice to You When They Take Your House
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