You’ve probably seen the headlines about major banks suspending foreclosure proceedings to reclaim houses from borrowers who have defaulted on their mortgages. This has the potential to be hugely disruptive—a milestone development comparable to the failure of Lehman Brothers in 2008, after which all hell broke loose.
Some commentators insist that the problem is nothing more than a few technical glitches that can be easily corrected. Others assert that there has been massive fraud, perjury (attesting to facts without having ascertained those alleged facts), and forgery (creating documents after the fact to produce a fictitious paper trail). Apparently, the states Attorneys General feel there might be fire among all the smoke, because all 50 of them have initiated investigations, and many of them appear as though they are about to go on the prosecutorial warpath. If this situation continues unabated, then we are peering over the precipice at a potential breakdown of social, civil, and political order, too. That’s the nightmare scenario. Let’s get back on track before it’s too late.
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