Wednesday, October 13, 2010

"Not the State, Not the King"

Your marching towards feudalism link for the day: Foreclosure Fraud Endangers Capitalism & Western Civilization.

As we noted previously, esteemed economists such as Hernando de Soto have identified that the respect for title, proper documentation, contract law and private property rights are the underlying reason capitalism works in Western nations, but seems to flounder elsewhere.

We cannot have free market capitalism without this process. So what does it mean if banks have been systemically, fraudulently and illegally undermining this process?

Of course, questioning the banks might cause trouble for the already troubled economy, which we all know was caused by Democrats, Fannie Mae and Freddie Mac, and not banks at all. Really.

Though it is funny to hear White House staffers balk at a foreclosure moratorium because it may have "unintended consequences." #isntitironic #dontchathink

HT: Jeffrey


1 comment:

Dante said...

Funny story: Wells Fargo used our escrow account to pay someone else's property tax one year. We had them red-handed thanks to our county's Tax Assessors Office help. They still dragged their feet getting it taken care of. After over a year of shenanigans, we contacted Clark Howard whose team suggested we get in touch with the Controller of the Currency. We had our money back and our escrow account cancelled in the couple of week window the Controller gave Wells Fargo to reply.

These are legal contracts. The protection of the law for ALL parties is paramount in enforcing them. Yeah it sucks that these banks are having to go back and redo paperwork on houses that should be foreclosed on anyway but it's a lot of hard work to get certified to lend in a state. They were damn sure aware of the processes and procedure of each state they entered before they were allowed to do business there. I can guarantee you the banks would pitch a fit if a buyer presented their paperwork improperly and then turned around and claimed that the bank should just let the closing take place because the borrower obviously has the money.