Legal Commentary

The Big Sh*tpile And The Foreclosure Due Process Crisis

By Big Tent Democrat

Taibbi writes about the foreclosure due process crisis in the United States (repeated disclosure, I work in this area for distressed homeowners) and gets to the nub of the macro issue underlying it all:

[I]t's the unpaid bills that are incidental and the lost paperwork that matters. It turns out that underneath that little iceberg tip of exposed evidence lies a fraud so gigantic that it literally cannot be contemplated by our leaders, for fear of admitting that our entire financial system is corrupted to its core — with our great banks and even our government coffers backed not by real wealth but by vast landfills of deceptively generated and essentially worthless mortgage-backed assets.

You've heard of Too Big to Fail — the foreclosure crisis is Too Big for Fraud. Think of the Bernie Madoff scam, only replicated tens of thousands of times over, infecting every corner of the financial universe. The underlying crime is so pervasive, we simply can't admit to it — and so we are working feverishly to rubber-stamp the problem away, in sordid little backrooms in cities like Jacksonville, behind doors that shouldn't be, but often are, closed.

(Emphasis supplied.) A co-conspirator in this massive fraud and scandal is the United States Treasury Department led by the incompetent and corrupt Tim Geithner. When the history is written on the Obama Administration, this could well be the lede.

Speaking for me only

Full post as published by TalkLeft on November 13, 2010 (boomark / email).